no. it's called leverage. more risk and more return. to make 24% on interest free leveraged money is a much higher rate of return. obviously u should only do it if you have 25k in available liquidity to cover your risk
No it is called irresponsible leverage.
i agree and that is a major problem but many people made tons taking some risk and every situation is a different risk/return. and to make a blanket statement that no one should ever do it and everyone that did it is stupid and naive and needs to get an education is also wrong. plenty of smart people with education have also taken too big of risks and lost everything . (and a lot of them had much more to lose than a bankruptcy on their credit report)
Whether the risks occurred does not change whether they existed. To leverage your entire financial stability on any investment is irresponsible. To "invest"in such a venture where they cannot get loans from people who can afford to lose it is irresponsible even if it is not leveraging your financial stability. To do both in one shot.....
That doesn't mean the people are stupid or naive, it means they did something irresponsible that they probably should have known better than to do. These things happen all the time that people do stupid things that they should have known better. Sometimes it is financial sometimes it is with their health sometimes it is with their spouse or someone else.
That some people made goods returns on it is totally irrelevant to the conversation and that you are even bringing it up shows that you missed the point.