Quote from: BVeyron on Today at 12:14:41 PM

Actually there is a problem of loan addictions, it's like gambling: people get what they want to have, then they pay properly, then they take one more credit, and so on... And at some point this person experiences problems with money loss (either problems with job, or other problems which need much money to solve), and then in order to pay the debts he or she needs to take actions in a hurry, which lead to even more money loss: they start selling houses/cars/business projects in really short periods of time, which makes them get less money for selling their belongings and property. This economic activity makes people gamblers, though most such gamblers don't even understand it and think that everything is stable.

Right some people use loan as their coping mechanism for stress because they wanted to buy something they can't afford. They continue to take out loans even when they don't need them or when they can't afford to repay them that leads to a cycle of debt and financial instability.

It is somehow the same with credit cards, it provide a sense of instant gratification and allow people to purchase things they might not be able to afford. Credit card companies also often offer incentives and rewards for using their cards which encourage people to use them more frequently. Tho I think borrowing money and credit card are different things because credit card addiction tends to involve smaller, more frequent purchases, while loan addiction often involves larger, more significant purchases such as a home, car, or personal loan. Regardless, those are both borrowed money. We should only borrow money if we are already expecting something that we can pay for it or we are just maximizing the time value of money.

Quote from: Kodok Bencot on Today at 09:43:38 AM

I think so, nowadays it's too easy to find a loan because of the presence of online loan applications, in my country to borrow $2,000 worth of money, just send identity and selfie, and within a maximum of 3 days the loan amount will be accepted, but with the ease of the loan, interest must be paid very high.

We have that kind in our country. So many ways online where we can borrow money and just have to provide IDs. I usually doubt its fast approval that's why I haven't tried it yet asde from the fact that I don't feel the necessity, but a relative of mine tried once. She borrowed money and then the next week she paid for it, now she is allowed to borrow greater amount.

It's true that they charge higher interest rates than traditional lenders, particularly if you have poor credit. And since online loans are so convenient and accessible, it is easy for people to overborrow and take on more debt than they can afford to repay. I even think that some online loan is a fraud, so it's important to do your research and choose a reputable lender, and only borrow what you can afford to repay.