It has become very common for people to borrow money . Most of people have a credit card a mortgage and often they will buy a car on credit as well . Is this goid idea or is it too risky? Discuss both views and give your opinion.

Acquiring capital from other sources rather than an income is becoming a popular trend among citizens. The majority of individuals have a residence on loan, purchase a car on the line of credit and borrow cheaply. If the instalment of borrowed finances is greater than the paying capacity

then

it is dangerous.

On the other hand

,if a portion of payments is less than the actual surplus income it should be normal. I will shed light on both sides of the issue and I think it varies from person to person depending on their circumstances.

To begin

with, getting funds from financial institutes is well-known for a number of reasons and a large number of adults go beyond the capacity of their resources.

For example

, after buying an apartment on a loan and giving a hefty down payment if a person loses the job and can not pay

then

will get nothing as the bank will retrieve the condo. In

such

,conditions those guys become bankrupt after giving away hard-earned wealth in part for loans. So it was undermined decision with gruesome results. The

second

class of creditors plan their pawn wisely within their reach, meaning the paying part remains smaller than the paycheque. That calculated acceptance of a loan provides their property in the long run when they

finally

paid up their pledge.

Furthermore

, the value of the dwelling will go up over time making them richer.

Moreover

, their credit score will be higher as they showed good credibility by returning full pay.

This

indicates that those classes of borrowers had a good insight into finances and surrounding outcomes. In conclusion, as discussed above results of the raised moned purely depend on individual scanning and understanding of the matter of lending either winning the gamble or losing at all.