Well, I have to clarify that personally I have never had any loan or debt in my life so this thread has nothing to do with my experience but intends to find out how people in loan/debt deal with the problem. Let's say you take loans from a bank and sometimes for whatever reason, you can not pay the debt on time, then you borrow money from other channels. Sure this works for a certain period but later bad things may happen, you have to postpone the payment and struggle with finances again. Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.
Well, the bank have some responsibilities too. If they gave you a loan that you were never supposed to get based on your income, then there are ways were you don't have to pay. For farmers in Norway you have to take loans if you want to upgrade your farm, the loan will be so expensive so they are not able to pay it back with their income because the prices of their goods are decided by some big players in the industry. And the farm is worth less then what they have in loan so that is also not a good option, but usually many farmers have secondary jobs. That is also a solution, work more, work harder, freeze in the winter (don't use money on heat), go in the forest and pick berries and mushrooms, fish in the ocean etc.Â
But the it is really like you said, it is a vicious circle the banks put us through with all the loans and to pay with credit. Vicious people and the worst pyramide scheme ever, Bernard Madoff is nothing compared to these guys.
Also here in our country, most of the farmers that I've known have their farm land in a bank because they took a loan to just plant crops as they don't receive any help from the government, so they took a loan and are having a hard time paying it back. What's saddest is that if they hit with a storm, they are having a hard time getting up, which is why others lost their land, and they tend to work as construction workers as they don't have land to plant on anymore.