[Thoughtful Discussion] Topic: Its Easy to get into DEBT, its Hard to get out of DEBT

[Cashflow202]

may the scholars come in to discuss this phenomenon that so many are willingly / unwillingly / knowingly / unknowingly getting into.

from property purchases to hire purchases (cars, etcetc)

and also robert kiyosatki experts can come in too.

 

[herzberg]

Got borrow, got return la, then bo debt lor

 

[MyWill]

Because it is easy to overestimate yourself.

 

[cheesybites1]

easy to borrow when banks and FI are encouraging all forms of leverage to the masses

 

[cosmothecat]

Spend within your means, then no debts

 

[knoxville]

Very hard to spend money ah?

 

[nonameless]

Got debt got motivation to find better paying jobs, step on others to promote like cheaper better faster some borrow money to come here.

 

[toastboxlover]

Spend within your means, then no debts

Best advice. No money dont buy

 

[Cashflow202]

its an interesting conversation as colleague was talking about purchasing a properties and how costly it is now, the monthly mortgage etc.

and i echoed that most of the property owners were first hand owners that transacted in the early 20s and the price back then were significantly 5x cheaper than now.

and what they pay in mortgage is significantly differing from new buyers that buys at 5x the price of the owner for the same home.

what's strange to be is that people almost talk multiple million properties in how much mortgage to finance monthly then the full amount. and the risk that it entails if counting on ability to commit month on month.

and what shocked me most is that they actually never really think about the full amount as all their expenses has always been month on month, eg. car monthly installament, home monthly installment...

financial literacy is lacking and its very dangerous when they dont understand the risks involved in hire purchases, let alone leverage!!!

 

[chaiscool]

Huh debt is good leh, got money then can have debt leh. Who want to lend money to broke ppl who can't afford to pay back with interest?

Rich ppl can afford debt which makes things cheaper for them. Why pay full $10m for house when can take debt at low interest and return the debt when can sell at $20m haha

 

[Cashflow202]

Huh debt is good leh, got money then can have debt leh. Who want to lend money to broke ppl who can't afford to pay back with interest?

Rich ppl can afford debt which makes things cheaper for them. Why pay full $10m for house when can take debt at low interest and return the debt when can sell at $20m haha

but then what if it drawdowns 30% wouldnt margin call come into play? then what?

 

[stanlawj]

its an interesting conversation as colleague was talking about purchasing a properties and how costly it is now, the monthly mortgage etc.

and i echoed that most of the property owners were first hand owners that transacted in the early 20s and the price back then were significantly 5x cheaper than now.

and what they pay in mortgage is significantly differing from new buyers that buys at 5x the price of the owner for the same home.

what's strange to be is that people almost talk multiple million properties in how much mortgage to finance monthly then the full amount. and the risk that it entails if counting on ability to commit month on month.

and what shocked me most is that they actually never really think about the full amount as all their expenses has always been month on month, eg. car monthly installament, home monthly installment...

financial literacy is lacking and its very dangerous when they dont understand the risks involved in hire purchases, let alone leverage!!!

What is shocking that these people assume their job is safe till they are 65, or they will never have problem paying their mortgage till 65.

 

[articland05]

and what shocked me most is that they actually never really think about the full amount as all their expenses has always been month on month, eg. car monthly installament, home monthly installment...

they bluff chiu nia...
sho to trick others into debt then they can armchio

 

[dexboi]

borrow money to earn more money.
isn't that what all of us are doing?

 

[chaiscool]

but then what if it drawdowns 30% wouldnt margin call come into play? then what?

Then top up, ppl don't gamble with all their money mah. So sure still have balance, or can liquidate other assets

 

[newborn1000]

Need to grow your GDP to outpace your debt

But if you have not the wits to do so , debt ish a terrible curse

 

[buttbERry]

must be able to afford what u buy

 

[glarerder]

may the scholars come in to discuss this phenomenon that so many are willingly / unwillingly / knowingly / unknowingly getting into.

from property purchases to hire purchases (cars, etcetc)

and also robert kiyosatki experts can come in too.

Modern day low entry criteria buy now pay later schemes would see many youths getting into debt if they're not careful enuff..