It has become very common for people to borrow money. Most people have a credit card, a mortgage and often they will buy car on credit as well. Is this a good idea or is it too risky? Discuss both views and give your own opinion
The borrowing to fund has become much easier as compared to the past. Nowadays, there are many banks, the institution which calls people to lend capital on the mortgage. Some people consider it as a risky trade, while others have a positive view about it. In my opinion, it is not bad to have a good deficit until an unless you are able to manage it effectively. To begin with, many people consider taking loans, as a risky business. The reason for that is, there have been many cases, in which, individuals are not able to repay these loans on time and had face pessimistic consequence. For instance, one of my friends had a handsome job with good salary of Rs 50,000/-, so banks were offering him the loans, so my he took the total loan of Rs 2 Lakhs which was having monthly due of Rs 35,000/- and suddenly he met with an accident and his job was lost and ultimately he was in big liability as he was not able to repay it on time. Therefore, from the above example, we can say that, buying things on credit, can be a dangerous thing to do. On the other hand, having a mortgage is not at all a bad thing. If you are able to use that debt or allowance for the right purpose with the proper planning and are able to earn profit from it, then it helps you to grow. For example, I started my work in 2017, for that I acquired a mortgage of Rs 25 Lakh, as my field was of construction and things happened as planned and by working hard I was able to earn good profit from my work, so at this moment of time, I am able to pay my loans as well as I am able to earn profit and also able to grow my work. To sum up, getting the credit is not a risky, if you have the proper plan and are using that credit to earn capital. To conclude, In my opinion, taking a credit is considered risky or not, depends on many factors like, for, what you are using that fund for, if you have any plans to use that fund wisely and a plan to repay it back. Ultimately, if you consider all the above factors, acquiring a loan is not a risky thing to do.
Submitted by jay tank on