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

There has been controversy about whether borrowing extra credits from

banks

or other institutions are beneficial than drawbacks. I completely agree with

this

notion unless the borrower does not manage it effectively.

To begin

with, from the business and mortgage perspectives, lending the loan seems to be an effective

investment

tool.

First

, extra credits from

banks

lead a vast of entrepreneurs to gain extra start-up funds to conduct their business.

For instance

, the famous entrepreneur – Elon Mask, borrowed loans for start-up money from

banks

to innovate electronic cars and spaceships, and

then

he becomes a famous celebrity and the most successful entrepreneur in the world.

Second

, the mortgage is an alternative

investment

to maintain financial security.

For instance

, in Hong Kong, housing properties are a finite resource because of limited land, soaring approximately 200% over a decade.

Therefore

, getting

credit

is not a risky decision, even an

investment

tool if you have a proper plan and are well-managed.

On the other hand

, borrowing

credit

can lead to trouble situations if you are not well-managed. Individuals are not able to repay their debt on time, even loan interest, which they face irreversible consequences.

For instance

, a vast of youngsters only afford to pay the minimum charge of

credit

cards, leading to bankruptcy eventually, which is significantly affecting their financial records in the future. In conclusion, despite borrowing

credit

from

banks

can lead to irreversible consequences

such

as bankruptcy, it is an effective

investment

tool for entrepreneurs and investors if you have managed it properly.