Carpon
Valued Contributor
The concept of loans and debt is very common and it is something that people argue whether it is beneficial or not. Well, personally, I will not love to draw a conclusion on the fact that loan is good or bad but all I can say is that there are times when loans are necessary and that is an advantageous part of them. There are other times when they are injurious and will have huge negative impact on you and that is when they are disadvantageous. In this thread, I'll be relating how loans and debt directly or indirectly affect ones personal finance.
First and foremost, a loan that you collected is usually paid by making deductions to a certain percentage on your monthly income and that means that there will be a reduction on the amount of your monthly income. This brings about more liability as you have less to spend and the danger of this is that you may resort to collecting more loans and getting into more debt which will eventually land you in a ditch of financial strain and crises.
The impact may be huge or less depending on the ability of the person to navigate through financial strain.
First and foremost, a loan that you collected is usually paid by making deductions to a certain percentage on your monthly income and that means that there will be a reduction on the amount of your monthly income. This brings about more liability as you have less to spend and the danger of this is that you may resort to collecting more loans and getting into more debt which will eventually land you in a ditch of financial strain and crises.
The impact may be huge or less depending on the ability of the person to navigate through financial strain.
