Money experts on the pros and cons of borrowing - and whether they have any loans themselves

"Taking out a loan is generally not encouraged when financial planning. We are mostly taught to believe that debt is bad. However, loans may be unavoidable at certain times, or even too tempting to resist when repayments look manageable."

"The latest figures from the Banking and Payments Federation Ireland (BPFI) show that there was a record number of personal loans taken out in the third quarter of last year - 73,626 in total."

While conventional financial wisdom discourages debt, not all borrowing is harmful. Loans become unavoidable or attractive when repayment terms appear manageable. The distinction between good and bad debt depends on how borrowed money is used. Good debt typically finances assets that appreciate or generate income, while bad debt funds depreciating items or consumables. Recent data from the Banking and Payments Federation Ireland reveals record personal loan volumes, with 73,626 loans issued in the third quarter, indicating widespread borrowing despite traditional warnings against debt accumulation.

Read at Independent