Quote from: I_Anime on Today at 08:11:36 PM

Quote from: JayJuanGee on Today at 07:00:36 PM

People do use loans for all kinds of reasons, and they do not necessarily rely on a gullible friend/relative to give them preferential terms. We have an over indebted society, and part of the reason is that debt is cheap and it also reflects various ways that the dollar (and other fiats) has been undermined through the years and even debased through the issuance of debt.

Just because the debt system is a bad system for society, rich people use debt to their advantage, and getting cheap debt can frequently allow for way more money to be made, as long as you know how to use debt in a way that you are finding higher returns on your money and that you are not putting yourself into a place in which you are not able to pay back the loan and/or that you might even put collateral into jeopardy if you are not using the debt in profitable and prudent ways.

Debt will only be encouraging to me is if the person plan to make use of that money properly like to start up a business with high chances of being successful over time

Justifying the debt can be the same no matter the purpose, and so surely one thing about a business is that you may or may not be including your own labor into the package, and some people start up businesses because that they consider that they would be able to make more money with their own labor mixed into it as compared with working for someone else, so surely there can be potentials for cashflow that comes from infesting into a business, but also the leveraging of ones own labor. Of course, self-started businesses are not always successful

Quote from: I_Anime on Today at 08:11:36 PM

, or maybe for life and death situation ,

Sure. Even if a person might have backup funds, and emergency funds and perhaps other resources, there might not be enough resources to pay for some extra expenses, or maybe you own a home and you can take out a loan against the house rather than selling it. That makes sense under certain circumstances.

Quote from: I_Anime on Today at 08:11:36 PM

but collecting loan for investment is not encouraging because you are only making use of money you can hold for long and there are chances you be in haste to sell off that investment inorder to pay back the loan , might even lose it because some tend to gamble instead of investing looking for ways to have quick returns like investing in some shit projects.

The parameters might be a little different for investing as compared with an expected income generating business.

I expect that with an investment, you would want to have most, if not all, of your ability to pay back the loan to be able to come from sources outside of your investment... so in that case, you are using the loan as a way to front load your ability to invest with an expected income from somewhere else that you would use to pay off the loan with any fees or costs that might come with the loan, so yeah you are taking chances that your investment might go up, down or sideways, but your ability to pay back your loan does not come from the investment.

If the terms of your loan are not friendly, then maybe you would not want to do it.. so for example, if you have an interest rate that is less than 6% per year and if you have a term that is at least 3 years and maybe even 4 years or more, then that may also be better, yet of course, you can calculate in. I have gotten loans for right around 2 years, yet they had right around 2% per year interest, so I did not usually have any problem taking those kinds of loans., and largely I made sure that I had abilities to pay that came from outside of the loan, so that I could pretty much use all of the loan, but I might also keep some of the cash in accounts as the loan came due (like if it had a balloon payment at the end of the term)