I would say bad is when we waste money and try to take loans, I have seen many people who have spent their entire salary that month on gambling and later took loans from other people, that too at high interest rates. Of course, I dislike taking loans in such cases.
I don't take loan at all and I am not against those taking it but many people that take loan doesn't calculate how much to be taken in respect with their income. Loan amount is not supposed to be higher or 80-100% up to your income, that amount of loan is dangerous, it destroys yourself and whoever is involved in it. If earning $100 a month, loan amount should be $5 or less.
And many people do not know that loan is addictive, you get used to it little by little until it becomes part of you, so you should be over conscious when taking loan.
Taking a loan is actually not that bad if you use it in a positive way, but taking a loan just because you have lose all your salary into gambling or any other useless stuffs, that’s very unacceptable. One should know how to manage his funds wisely, so that he can avoid taking a loan that has high interest.
Well, except for emergency cases wherein your emergency funds still lacks, but having the fact that you will take a loan for the sake of trying to cover up your mismanagement of your funds, that practice should be stopped as early as possible.
Yes you are right. There is nothing wrong in taking loan especially when it is done with the right intent or purpose. Taking loan for investment purposes or for starting up a business is not a bad idea. Some person takes loan to sort out there daily expenses without any plan of paying back when it is due.
If it is necessary loan taking should be avoided especially when there is no genuine reason for taking loan . I have seen cases were people takes loan to feed, when the time is due for then to pay back it becomes an issue since there was no good reason for taking the loan. Also people do take loans when there is unforeseen contingency and there is no emergency funds for them to used to salvage it.