Debt Do You Borrow Money To Pay Previous Debts?

Good-Guy

VIP Contributor
Paying debts can be tough sometimes. In fact, many people actually have trouble paying debts. This is why I have always advised people to never take loans or borrow money until or unless they are quite sure that they will be able to return the loans. Borrowing money can lead to debts and having a bad debt record is never a great idea because it might have an effect on your reputation and credit history. Sometimes people even borrow loans to pay off their previous debts. This is done by people whn they are not able to pay off previously taken loans and borrowing money to pay off previous loan actually gives them more time to pay their loans because the loan and credit terms get refreshed (i.e. new agreement with a new date is created). This might seem like a big advantage of taking loans to pay off debts, but have you ever done this before?
 

kayode10

VIP Contributor
There are some times where you will need to borrow money just to pay another debt you have that is looming. it is very common especially when you are borrowing money from the loan apps. Those guys are very good at disgracing someone because they have your contacts. I don't do it, I usually stay within the means.
 
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Abigael

Valued Contributor
I used to do this in the past. I would take a loan and use it to pay another loan. And I would feel really great for doing this as the time to pay back the loan had been increased. But with time, I realized it was not a great system. I was just using it to procrastinate. So these days, I work hard to pay loans on time and in the meantime I don't take any other loans.
 

btaliat

VIP Contributor
To be honest, I have never done this before and I won't do it. I always make sure I have capacity of paying debt before obtaining it. This what I do, if I need $100 and I have $100 in cash. I will borrow $100 with the hope of returning it. But if I don't see the mean of returning it, I will use my own cash to repay.
 

Alexandoy

VIP Contributor
I think I borrowed money to pay my outstanding debts just once. We had a privilege in our office for a personal loan of $100. That was big money during that time. I was able to pay all my debts from different persons and I had a little left. The loan was payable in 2 years which gave me convenience in the affordable monthly installment.
 

Mika

VIP Contributor
I know a lot of people who burrow to pay the debt. I think this method of loan payment will send them into the whirlpool of debt. They will never clear off their debt, they will always remain in debt. You cannot pay your debt by taking a loan. The loan should always be used for income-generating projects.
 
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