Quote from: Xcode7 on Today at 06:20:44 AM

Quote from: Crypto Library on July 27, 2025, 09:51:34 PM

I will agree with you that borrowing does more harm than good, and if it is a third world country then things are even worse there. Especially the people in the government of that country borrow money at high interest rates to develop the country but a huge part of that loan money goes into their own pockets through corruption. And this really makes a country more crippled.
However, it is also true that there are many countries in the world that cannot move forward or operate on their own without loans, so they have no other choice.

There is no other choice, it is a logical reason in my opinion, as well as for everyone, even though I am sure that no one wants to borrow, especially with high interest, but for someone it must be done to meet needs or urgency and there are also those who borrow to advance a business, I think that is normal, but again, it comes down to the goal and the solution, there must be careful calculations so that the loan can be repaid.

I don't know the conditions of the lending and borrowing business abroad, especially in developed countries and elsewhere. I'd like to share my thoughts on the lending and borrowing situation in Indonesia. My country is currently in a state of emergency due to illegal online loans. But for the ignorant, those with bad intentions, and those with low repayment capacity who can't borrow from banks (legal lending institutions), illegal online loans can be a painful and terrifying short-term solution.

Pop-up ads for illegal online loans are popping up everywhere. With just a cell phone number you've been using for a few years, you can get a substantial online loan.

Problems will arise when we cannot pay the installments on time, high daily interest (30% interest for a 1-week loan) and on the 5th day you will start to be terrorized and your cell phone contacts will be contacted randomly to pressure you to pay immediately. Those unable to bear the shame often end their lives by suicide. Those who are stubborn and mentally strong continue to seek illegal online loans. Since the death of a debtor who was being collected by Citibank debt collectors, there have been no home or workplace visits; only phone calls or the distribution of debt information to phone contacts. This has led to a rampant proliferation of unscrupulous debtors.

So, some people go into debt because of urgent needs. Some go into debt to fulfill hedonistic desires (having what they want rather than what they need). Some go into debt for investment (the desire to improve their lives).

Meanwhile, borrowing from legal financial institutions is reserved for the wealthy (because they require collateral) or at least for those who own businesses (people's business credit). In Indonesia, there are also several banks that provide loans based on Sharia principles, but access remains limited to the lower classes.