Loans What Are Some Methods You Choose To Avoid Bad Debts?

[Good-Guy]

Having a loan or debt can be huge burden. I usually avoid taking huge loans and this is the only way I have been using in order to avoid debts. However, I do take small loans of $2 or $3 from my family members and it seems like a huge loan to me, despite the fact that the amount is just too low. I have always believed that the only way to avoid debts is to avoid borrowing money. I am quite sure many people might have different plans when it comes to dealing with loans and paying the loan off. So what are some of the ways you choose in order to avoid bad debts in business or personal life? Please share your valuable opinions.

 

[Deleted member 28127]

It depends first on your income and second on your pocket money so for some people 2 $ or 3 $ isn't something that we could take as a loan while for others they are based on these small loans so it is relative from one person to another on many factors.

 

[Good-Guy]

It depends first on your income and second on your pocket money so for some people 2 $ or 3 $ isn't something that we could take as a loan while for others they are based on these small loans so it is relative from one person to another on many factors.

I believe another great way to avoid debt is to borrow what you can afford to pay back. Many people borrow loans that they are not able to pay back and in the end they end up being in huge bad debts. They become defaulter by the passage of time and file for bankruptcy.

 

[btaliat]

I am not totally against borrowing especially if there is a good reason for borrowing. However, I don't encourage borrowing when there is no mean of repayment at hand. This will lead to bad debt eventually. I don't always borrow except there is alternatives way to how I would repay the borrowed money

 

[Letlhogonolo]

borrowing cash from close ones, working to save up for the business set up, angel investors too can be a good option too.

 

[Mandy96]

I can’t really say there are methods to avoid debts but the main thing I know is not to bite more than you can chew, what I meant by this is to borrow money when you know you do not have a sure way of refunding it, this is the actual mistake most people make and it eventually put them in a huge debt that can’t be paid, if you are business man or an entrepreneur, it is not wise enough to run it with loan, it could definitely destroy your investment, it is not always a good idea to choose such ways.

 

[Good-Guy]

I think another great way to avoid bad debt is to avoid taking loans as a whole. A person can avoid loans by working hard and making money and then invest that small amount to start a business without borrowing money. The disadvantage of starting such business is that you may not have enough capital to sustain the business, if the business does not generate profits instantly. However, it is still much better than borrowing loans and ending up in bad debts.