Loans Common reasons for remaining a debtor

[Augusta]

It can be a pleasure to receive loans until it get to the time for repayment. You would see the other side of a creditor if you fail to pay. The embarrassment and harassment can now make you question why you have become a debtor instead of staying debt free. The following might just be your reasons.


You are making little money that isn't enough for your bills

You are bad at spending and you make wrong choice..

You spend as you receive. In other words you are not saving anything for the next minutes

You are not contended, you just want to have it all even if it means you borrowing

You are lazy about working on your finances to avoid borrowing for any other things

What's your thoughts?

 

[Alexandoy]

I had experienced being under a pile of debts due to my negligence. All the while I thought my high salary can handle all my borrowings but I was wrong. Trimming the expenses for several months helped me pay off the debts. If I did not do that then I might still be owing money until now. Budgeting the funds is important regarding debts.

 

[Augusta]

That's the truth, sometimes we need to wake ourselves to reality and be real when it comes to our finances. Alot of people do this same you were doing piling expenses and believe their salaries will help sort everything out when it arrives. Unfortunate for some people this is always the beginning of their financial woes. You pay off the ones for this month and what is left of your salary can't even get you to the next pay day and you start borrowing again to pay for expenses still the next pay day to pay back and the chain continues.

When once you begin to have expenses that takes up to 1/3 of your income then it is time to trim your expenses especially those that you can do with. For a human I think what leaves one in debt most times are household expenses you need to create a budget that would get you to reduce your expenses but you need to stick to this budget.

The bottom line is that you should avoid unnecessary spending, live by your means, avoid borrowing and be contented with what you have at your disposal. Life isn't about competition, live for yourself. now.

 

[Abigael]

Those are very good reasons you have mentioned and I agree with each of them. Indeed people remain debtors for a long time first because you are earning less, that may cause you to not afford paying back a loan. Also, being an impulsive buyer and poor financial decision making can make you move from one loan to another.

 

[btaliat]

Being in debt is the greatest challenge that may face an individual as this will deny him progress in the long run if care is not taken. How do we find ourselves in debt and what can we do to be out of it?

Sometimes, some debts are inevitable and we find ourselves there not because we are careless or frugal but we cannot help the situation. That's the reason why we need to know the cause of the debt first to plan how to avoid it. However, someone without a plan on how to exit a debt situation will end up being in debt.

Also, someone that doesn't take into cognizance how to use scale of preference will always end up in debt. It is not a gainsaying to conclude that our wants are more than our needs. So if we are not careful with the way we utilize and choose between our needs and wants, we may end up being in trouble.

 

[Augusta]

I totally agree with your last paragraph you need to list your needs in the order of importance so that we can handle the most important needs only to avoid throwing money around on frivolities. Scale of preference should be adopted by serious minded people that wants to work on their finances to boost it rather than depleting it. people need to know that as you deplete your income or money you are hitching towards brokeness and when it eventually happens you wouod see yourself borrowing to start helping yourself out.

But the thing is that this thing can be avoided if the right thing is done. You know your needs then you scale them and go for the one you can't do without and leave the rest still you have money that wouldn't affect your withdrawal if you decides to go for it. People need to stop putting selves in a position that would leave them borrowing or else you would wake up with no money and seriously in debt.

 

[Sotherefore]

One of the disadvantage of getting a loan to do anything is that you can easily get a loan and it will be simpler for you to do all the necessary requirements to secure a loan but to pay it back is always the most important factors. Paying back of loans is always the most challenges of a lot of people . That is why if you are not really sure about the business you are doing it is always important for you to avoid loan at all cost because it could possibly be dangerous when you are not able to pay it back.

The inability to make the required money that is needed to cover this loan is the most important factors that could lead to inability to not paying back the money you have collected. Knowing the type of business we are starting with a loan really matters because if we engage in non profitable Business we won't likely pays back the loan we collected.

Lack of proper financial Management could also be another important factors just like you have said. Proper financial Management in any organisation is absolutely necessary and not just for repayment of loan but for the general progress of the business
.

 

[Kendy]

Assuredly, all the points you have enlisted are valid and nothing short of the truth. People remain debtors because of ineffective management of funds and refusal to set their priorities straight. Also, they spend beyond their budget without thinking about the future as they depend on collecting more loans. There are loan collectors who fund pleasure and ease in collection but to repay is always a major problem. When you do not have a source of income, when you do not utilize the loan you collected by investing it properly, when you do not strike a balance with making profits and also repaying the loan gradually, then you will remain a debtor for a long period of time. Laziness is also a common reason why people choose to remain debtors, when you get a loan, there is a deadline because that is business to the loan owner and failure to pay up will only attract more interest rates. People will get loan and feel so relaxed and will not work towards doubling or making profits so it will be easier to repay on or before the stipulated time. This is the more reason why people do not lend out money to acquaintances because they do take advantage of the Goodwill.

 

[Kingsley]

The human nature is a type that if it is thought to take a particular pattern it will adapt to it and it will remain that way, I always advice my friends and even relative whenever they come to me for financial advice whether to access loans or not and I always discourage them from accessing loans. Because I know that no matter how pressing their needs might be for now there could be other alternatives that one can decide to take rather than going for loans.

I know sometimes we may be thinking that what we want to use the loan for it very important and hence we will be hell bent on taking the loans. But the truth is there are always alternatives mostly when it comes to business related issues. The problem i see people that loves to access loans is that first their business finds it very difficult to grow because the interest on those loans are eaten up their profit and hence they can not point to their profits at the end of a business period.

And whatever we do repeatedly becomes a part of ones life style this is why it has been difficult for them to break free from debts.

 

[Good-Guy]

Obviously the biggest reason why many people always remain in debt is because they always borrow money all the time. There comes a time when they get addicted to this habit and they always borrow money even when they have money. No matter how small or big the amount is, you are a debtor when you owe money to someone. Some people borrow small amounts of money, but those small amounts usually add up and turn into big amounts by the passage of time when you do not pay them. Paying such a huge amount might definitely feel burdensome for many people.

The problem becomes worst when you borrow money and you have a harder time returning the money due to the fact that you were not able to save enough money to pay off those huge amount of debts. As the original poster mentioned, a person could also become a debtor when he does not manage his finance in an economical manner. Unfortunately, it is no longer able to do that in my country because goods and commodities are becoming so much expensive that people are no longer able to save any money. When they do not save money, they lose the ability to return the money they borrowed.

 

[Suba]

The desire for high instantaneous needs that are not balanced with sufficient income will always make someone in debt. People who are like this just want pleasure and a luxurious life without having to work hard. Because in life we need financial control or adjusting our needs and desires with income.

 

[Rachael]

One of the common reason for remaining a debtor is mismanagement of funds. Some people jus enjoy the feel of obtaining loans without a proper plan to utilize the money. I have a friend who took up a loan just so she could pay her house rent when she was obviously doing nothing to bring income. In this life, we need to cut our cloth according to our size. How can you live in an apartment of over $500 yet you are engaging in nothing lucrative. There is no way you would be able to repay back the loan on time and even if you finally repay, it would still be from or through collecting of loans from another alternative, which will make you end up in bad debts. With the proper management of funds, it is much more feasible to repay the money even before the time expires. Also, one other reason is government policies, there are some policies being set by the government that do not allow businesses to thrive which in turn makes people remain in debts. Lack of creativity in individuals has made them see taking of loans as the only alternative they have, the inability to think outside the box has caused this disaster.

 

[funmi]

One area I see that is making people to remain in debt is the problem of trying to impress other people. There are some people I know that are well to do but they wouldn't just can not manage their greed for more. This is what has lead some people into perpetual debts. There is this lady I was working with, her husband happens to be a professor and they are doing extremely well financially and the husband was fully ready to support the wife in all ramifications mostly financially. The man had proved himself when he established that business centre where we are both working together. But it baffled me when day when my boss told me that her guarantor had disappointed her and she needs me to come in a d stand for her as her new guarantor that was when it dawned on me that she had been accessing loans all along despite all she gets from her husband. So this is exactly the case of so many people out there too. Some just access loans all because they feel they can always pay back whenever the need arises. And some access it for mere lack of control.

 

[Bookwormlux]

This may sound somehow, but I am of the opinion that a lot of people who collect loan and refused to pay back already had it in mind that they will never repay that loan right from the beginning even before they got to collect it from the company that is giving them the loan .

I have seen a lot of them and that is why I have this believe because I know that I am not just assuming but I am speaking directly from experience that I have heard and seen a lot of people doing it .

It is very important for individuals to try as much as possible to decide that they are not going to become debtors in life at all .

This is the only reason that will enable them to take their stance no matter how much tempted the fill to take a loan .

If you do not discipline yourself up to this extent, it will be very difficult for you to avoid the temptation that taking loan presents .

Most people also failed to repay a loan because they did not have enough capital to go about the business that I intended to use a loan for .

 

[TOZZIBLINKZ]

I do not think there is anyone who love the state of being a debtor . one of the reasons why some people still consider themselves indebted to others is because they borrow way much than they have been able to repay . It is very important that we put our income into proper consideration when we are trying to borrow money from another person we must only borrow an amount of money that we are able to repay back we shouldn't borrow money that will take us a whole lot of time or possibly years to complete repayment . there is absolutely no need to borrow a money that you will not be able to pay back because you will only bring yourself frustration and most importantly anxiety .

majority of individuals are overworking themselves thereby bringing dehumanizing health effect to themselves just because they want to pay off the debt that they have been owing to others . We definitely don't want to be this kind of individuals we want to make sure to only borrow money that we are able to pay peacefully and unstressfully . We must also endeavour to pay off a debt when we have the money and not assuming that it is too early to pay off the debt .

 

[blessingc]

Debtors are individuals or businesses that owe money, whether to banks or other individuals. In every case, the debtor owes money and remains a debtor until they’ve paid the full amount back. They have responsibility for that specific debt.
Being in debt is like living under a dark cloud, deciding to get out from under it can be life changing.

Make a list of your debt chronologically, from the first to the last, the highest price to the little so, you can know where to start from. Don't just create your list and forget about it. Refer to your debt list periodically, and keep up little by little to pay for them.

Coming up with a realistic battle plan can help you address necessities like housing, food, transportation, health care, insurance and education. It will also create room for you to pay down your debt, but if you are the lazy type who keep deceiving yourself with promises of I will when you still live a normal life without extracting alittle to settle your debt, you will remain the debtor that you are.


If you can’t afford to pay anything more, at least make the minimum payment. Of course, the minimum payment doesn’t help you make real progress in paying off your debt. But, it keeps your account in good standing, which avoids late fees.

 

[Setho]

One of the reasons why people are not going to be making it in business is because of how they are usually not cautious about how they are spending their own personal money and where and what they are supposed to buy .

There are some people who are always in debt because they always like to buy every premium products that they are seeing . The truth is that everybody love comfort but there are certain stages in your life in which you cannot be able to afford all the good things in life and all you have to do is for you to be buying only the ones that are essential that that time .

There are also some people who are in massive debt because they always try to live above their own means . As somebody who is just trying to come up and looking for stability , it is very important that the money that you are making is far greater than what you are spending at the end of every month and try to cut out everything that is unnecessary .

People are also going to be suffering if they are not going to be making wise investments and I always putting money in one ponzi scheme for the other.