Why you should stay away from Debt Crowdfunding?

[Good-Person]

The debt crowdfunding is a kind of scheme which involves borrowing money from other people. The starters of such kind of schemes may promise a huge amount of profits to the lenders. Such kind of schemes could potentially involve fraud. So, what are some other reasons you should stay away from such schemes?

 

[Nomad]

Well, I am not familiar with the term debt crowdfunding, however, I have frequently come across investment schemes where the company promises huge returns and common people start investing in these companies. These companies either turn to a HYIP or a Ponzi scheme and the investors lose their money.