Quote from: knowngunman on August 10, 2025, 10:36:25 AM

Quote from: Fullbear2222 on July 14, 2025, 02:34:32 PM

Only way for many is now just to keep that system up and running to pay old debt with new debt.

This practice is more dangerous than the crisis itself. When an individual or an organisation reach a stage where they need to borrow money to clear out old debt, it only takes intervention to revive such company back to their feet otherwise, it is best to close it down as early as possible. Borrowing money is not ideally a good practice but it can not be entirely avoided at some point especially if you are to use the borrow money on a good course. However, it's a great financial mistake to start borrowing to settle old debt because it keeps you in debt circle. Advisably, irrespective of economy and inflation saga, one should do everything possible to avoid loans.

That would be basically death spiral for any company. I am not against getting a loan, it's fine if you want to grow, and I did, and I have huge huge debt, which I am having so much trouble paying it back, it's literally a terrible place to be in at the moment. But you know what's different?

When all of that is gone, I will be making more money per month. If that is how you use loans, that's fine, but only pay the old debt with new debt? That will mean that you are not going to get what you want, it's just not going to work at all. It should be something that will take a while for you to recover from and there is a big chance that you are going to end up with more and more debt. Don't know how to get out, but the best known way is to spend less, and earn more obviously.