Why borrow again after bad experiences borrowing in the past

So you've borrowed in the past and got into all sorts of difficulties. The property market crashed, the jobs market crashed. You had too much borrowed. Car loans, lifestyle loans.
So post bankruptcy or even post no bankruptcy why on earth would you want to borrow again in the future ?

People always think the good times will continue forever, until they don't.

I think it isn't a case of borrowing again. I think, since the last crash was over 10 years ago, that there is a whole new group of (young) people who have grown up now and are ready to borrow for the first time. What is that saying about doomed to repeat history?

RichInSpirit said:

why on earth would you want to borrow again in the future ?

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Are you suggesting everyone should save the full purchase price prior to buying property? Someone who might need transport to be able to make it to a better job should wait and save on the lower paid job? Not sure I really get the point here.

Because borrowing is not necessarily a bad thing. At prudent levels and for the right purposes, it’s fine.

To add to some of the above posts, somewhat unnecessarily but hay, that never stopped me before:

Borrowing for a home when the repayment will be lower than the rent you are currently paying; good.
Borrowing for a new home because you want a McMansion; bad.
Borrowing for a holiday; bad.
Borrowing for a reasonably priced car because otherwise you couldn't get to work/ do the shopping/ drop and collect kids; good.
Borrowing for a car because the new BMW 8 series is really cool looking and you're on €60,000 a year so don't have the €125,000 is costs; bad.

I could go on... I do go on! But on this occasion I won't.

RichInSpirit said:

So you've borrowed in the past and got into all sorts of difficulties. The property market crashed, the jobs market crashed. You had too much borrowed. Car loans, lifestyle loans.
So post bankruptcy or even post no bankruptcy why on earth would you want to borrow again in the future ?

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Because you need a resource/item/access/something more immediately than your current available cash will allow.

Borrowing isn't in and of itself a problem. It is an important mechanism that allows us access in the present to things we need but can only potentially afford in the future. It is an important aspect of a shared society. No one person is utterly reliant on their own resource alone, they have access to the resource of others. In many places even in this day and age, that access is extremely expensive (I am thinking of bonded labour type situations but there are many examples of iniquitous or atrociously expensive lending). Fair access to reasonable and affordable credit is very important. It doesn't mean you have to take it, maybe you will be a once bitten, twice shy thinker but many people will find themselves needing something and despite a difficult history, making the decision to try borrowing again.

Besides, if anyone has learned lessons from the crash it is most likely those who paid most dearly for them.

Borrowing for a holiday is not necessarily a bad thing.

For example, paid for over the course of a year would be perfectly fine.

so-crates said:

In many places even in this day and age, that access is extremely expensive (I am thinking of bonded labour type situations but there are many examples of iniquitous or atrociously expensive lending). Fair access to reasonable and affordable credit is very important.

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Good point. Access to credit is essential for the growth of a middle class and a free society. In much of the developing world lack of clear legal title makes it hard to access credit and grow businesses; you can't leverage your asset if you don't have clear ownership of that asset (see, lawyers aren't all bad!). That's why micro loans are so important. In the vast majority of cases it is women who access these loans so it also reduces gender inequality. Anyway, I digress.