Loan debt vs Investment equity – Which is the better one?
If you are going to give money to your friend or cousin or any other family member, you are investing your money in loan debt. You are actually loaning your money to another person, therefore you are investing your money in loan debt. However, if you loan a huge amount of money to a corporation or any big institution, you become a shareholder of that company. If you invest in equity and get good profits on that you can use that money for payday loan settlements. Now, this kind of investment is known as equity investment and is considered to be much better than loan debts.
How investments help
There are various kinds of investments that may help you earn good profits; and if you are able to earn good profits, you will be able to use that money for various debt pay off purpose like payday loan settlements, credit card consolidations, repayment plan payments and so on.
However, if you really want to get good return s on your investment, you will have to have good knowledge on the investment vehicle you are investing your money in. So, if you are going to invest your money in loan debts, you will have to think twice if you want to earn profit. There are many disadvantages of loaning money to your family members or friends. You may not be able to take interest on that and you can even lose the total money. If you are really attached to the person you are going to give your money, it is better to give away that money to him or her.
In case of investment equities, you may be able to earn good profits. However, there are higher risks of investing in shares of a company. You can even lose your money if the corporation or business fails. Actually, which kind of investment is much better depends on the investor. If you think that you are ready to take along high risk investments, he may invest his money in equities.
However, if you don’t want to risk your money it is better to stick to low risk investments. Like if you have very less money, if you are going to retire recently, it is better to avoid investing your money in high risk investment vehicle like the equity investment. If you want to do good investment, you can consult an investment counselor.