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32 sats \ 3 replies \ @pillar OP 28 Dec 2024 \ parent \ on: Operation Saylor - Episode 30/120 bitcoin
That's a good question.
The way I am now reasoning about this is that I've set certain targets about how I want my liabilities to look like. This includes stuff like what should my debt-to-equity %, what % of my monthly income I'm happy to put towards installments or what set of maturities I'm happy sitting on. Kind of how you can have a portfolio allocation plan that says I want this % in this asset and this % in this other asset and I'll rebalance this way if positions drift.
In the case of loans this is a bit harder to manage in a precise way because it's not like you can go acquiring a bit more liabilities every week ("Oh I'm 0.17% off my desired Debt-to-Equity, I'm gonna borrow 327.12$ more"). I can only get debt in big chunks, so it happens that I drift severely from my liabilities targets. But I still have them.
Coming back more precisely to your question: yes, I'm willing to take on more debt or roll my existing one if it improves how my liabilities portfolio looks like or it brings it closer to my desired targets.
That's a good way to look at it. I've never taken a personal loan before (home loans aside). I'm curious to know what factors your bank considers when deciding how much to lend. I'm assuming debt-to-income ratio and collateral are the biggest, but do they also consider what you're using the loan for? Or don't they care? And (assuming you're with a traditional bank in the EU) would they accept BTC as collateral?
If you've already written about this, I apologize. I've just read your first couple of posts in the series. I need to keep reading.
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No probs.
I guess the behaviour of banks changes a lot across countries.
In my case, personal loans are easy to get if you have a steady income stream, and banks are happy to give away while your installments-to-income stays somewhere under 30-40%. After that, it's very hard to convince them. Their algorithms automatically throw you out.
Regarding what you are using the loan for: they say they care, but they lie. There will probably be a checkbox somewhere to ask about it. You can happily proceed to pick any box (never changes the conditions you are being offered) and they will never ask again or perform any kind of check.
And about loans with collateral: it's an area I'm currently researching about, but I don't have a lot of experience with it either. Surely, no bank around here would touch BTC as collateral, but some might be willing to take other tradfi assets like stocks and mutual funds. Real state is also an option, of course.
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Interesting. Thanks for documenting the journey for us and being so open. This is valuable stuff, keep it up.
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