Is it advisable to take loans when you are absolutely sure that you have enough funds to cover the need?

[Trush Jodie]

We always hear of very wealthy people owing some amounts of money and we often wonder why persons of such calibres would be owing loan debts when they can afford to cover such costs.

Is it advisable to still go ahead and take loans when you can comfortably cover a particular expense?

 

[Springtime]

For me, I dislike taking out loans, especially when I have enough money to cover my needs. For wealthy people taking out loans, the money is mainly for business projects.

 

[Suba]

Every rich person has different views and principles and of course they have different reasons. There are also very rich people, when opening a branch of their business they borrow money from the bank, so that their branch of the company can reach the target to pay off debts every month, and all employees know that the capital comes from bank loans so they should not be lazy.

 

[magnus2022]

Well, i think is wrong to take loan especially when you are financially capable to solve a given problem per time. In my opinion, it is stupidity of the highest level. Some rich people use to do it, but i don't see any sense in that .

 

[King Belieal]

I think it is mainly for business that those rich people take loans for. Almost every big business that you see has loans it is paying.

 

[eLdavis]

Most of these wealthy people do not have cash at hand for spending, yes they have enough property but not cash, hence they tend to borrow for most of their investments. In a situation where I have the money to do what I want, I do not see a need to borrow for it again.

 

[Augusta]

It depends on different situations if you wants it then you go ahead but for me I think it is not necessary

 

[pousinha]

The only reason I see happens when the money to cover our needs is all invested and the withdrawal before the timeline means the loss of important interests and/or a penalty to pay to withdraw before the timeline.

 

[Min George]

The only reason I see happens when the money to cover our needs is all invested and the withdrawal before the timeline means the loss of important interests and/or a penalty to pay to withdraw before the timeline.

And that is what wealthy business people face that they have to take loans for the various business projects they handle. They always pay back.

 

[pousinha]

Yes, as that's only to wait for the timeline of their investments to pay off the loans. This should be also the aim of the use of credit cards (it's like taking bank loans).