Disadvantages of borrowing money from people

[Holicent]

There are many disadvantages of borrowing money from people. It is better to avoid them because they can lead to a lot of problems.

The main disadvantage of borrowing money from people is that you will end up losing your money if you do not pay it back. You might find yourself in debt and unable to pay the amount you owe. This happens because the lender may demand more than what you borrowed or he may ask for a higher interest rate than what was agreed upon.

If this happens, then the lender will take possession of your property or belongings until the debt is paid in full. This means that you will have nothing left but your clothes on your back and nothing else that can be used as collateral for repossession by the lender. If this happens, then there is no other option for you but to go back home and beg for forgiveness from your family members who had given you their trust in letting them borrow their money from you in the first place

Another disadvantage of borrowing money from people is that it can cause financial problems later on in life when paying back loans becomes difficult due to lack of funds or employment opportunities.

 

[saoussen5765]

Half of people for example I want to sell this with 1500 $ but I have now 1200 $ so the buyer could make discount of 5 % to let price 1425 $ then let 225 $ as loan better than finding another buyer having only 1000 $ or 800 $ so the deal will be bigger.

 

[Frankdan]

Borrowing money from people is not good. Most time when you borrow money to do a business, the business will not bring profit and you'll end up in debt. I can't advice people to borrow except there's no other option before them. Also loan from bank and other money lending company that give out loan to generate interest are worst people to be with. Run from them if you're a business owner. You could end up using all your profit to pay interest.

 

[Suba]

Borrowing money from people, be it friends or relatives or our neighbors, is a shortcut or fast track to get money when we have no money at all. or when we need additional capital to expand the business. even today there are lots of online loan applications that offer loans only with identity cards and cellphone numbers and shopping applications also offer Paylater, so it's very easy for us to be able to borrow money unlike borrowing from a bank which has to meet many requirements.
Disadvantages or the bad impact of borrowing money from people is that it will form a habitual character of debt, so that when you don't really need money, it will be easy to borrow even if it's just to fulfill satisfaction needs such as buying a luxury bag that is being discounted. If you fail to pay your debts to people then good relations will break. Especially if you borrow money from an online loan application, the interest is calculated daily and is much higher than bank interest. The loan tenor is shorter so you should be able to pay off the debt quickly.

 

[saoussen5765]

It is true you fail most of time to pay in time like for example it is expected you pay debt on monday but you pay in later on saturday because theory and reality are bit different for collecting money to pay back debts and some people misunderstand this but they have totally reason even you will explain the situation they will think you will never pay.

 

[Heartstrings]

Borrowing money from people have many disadvantages, it's really not a bad thing to borrow money but some will end up disrespecting you,mock you in your absence. And once you start borrowing money, it's hard to refrain from it. Another disadvantages is that the more you keep borrowing the more it won't have value because what doesn't have a value doesn't last long.

Some people end up borrowing money from there to four different people,their Dept will be accumulating,end up running from them because he has no means to pay off. That's really bad, some people can even take you for granted or make you a laughing stock when you couldn't meet up.

Because of too much borrow borrow,some may have and not want to give,no condition is permanent. Go out there and even though it's to carry block and get paid 1000 it's much better and keep your dignity.

 

[eldavis]

I do understand that some persons borrow money due to the fact that they are seriously in need of it at the moment, either to sort out personal issues or urgent matters, but some have turned it into a habit, they tend to borrow from others to Carter for things they have no need of. There is a popular saying here in my country, which says cut your coat According to your size. This means be contented with what you have, manage it to the fullest. One thing about contentment is that others see you like you are doing just fine and you have more than enough but the truth is that you are just trying to manage what you have and work with that.

 

[Carpon]

Borrowing money has it's good and bad side and taking only one side of it may mean imbalance.
At many instances you may be having an opportunity to invest and without funds at hand, your only resort will be loan collection. If you are able to make good dividends from such an investment, you see that borrowing has helped you greatly.

But indeed as you pointed out in this thread, borrowing can be very disadvantageous and even dangerous. Psychologically, it may even affect your well being and you get stocked with thoughts of his to pay back especially if a means of doing so is not obtainable.

Usually the bad part of borrowing is seen when you are unable to settle it promptly. So many people of high repute were disgraced by reason of borrowing and inability to settle their debts duly and promptly.

The habit of borrowing is very bad and I will personally advise gay if it is possible, do not even borrow at all.