Loans Is Good To Pay Loan With Another Loan?

[kayode10]

People obtain loan to do different things in the Life. there are some people who obtain loans to start up a new business. Some people obtain loans to finance their contracts.

One thing I know is that it is good to invest a loan in your business or an asset that will bring in more money for you.

With that you can be able to repay back the loan and interest with little or no effort. this is the reason why some real estate investors obtain loans to buy property.

And we have some people who are obtain loan just to buy things for themselves. This is not good enough because that is not the good way to make use of a loan.

I want to ask that can someone or take a loan to pay back the old loan?

 

[Sotherefore]

Both of them are almost the same thing but the difference is that you have settled the person you will owning a loan previously. In this case you will be free from harassment from the previous person while the other person will still give you enough time for you to gather some money. That is the only difference.

 

[Good luck]

It is not a bad idea to use loan to pay loan as long as the payment or refund is not at a high level,i mean the instalment is minimal and it will not affect the person.if you are opportune to get a flexible loan to pay a loan that is on high side it is advisable to go ahead and do it.

 

[Jonaville]

Obviously we don't need to be told that it is definitely not a good idea. At the end of the day one will be left with nothing to call his own. You borrow to pay back another money you borrowed, it is like a never ending cycle, when will it end?

 

[btaliat]

When one uses another loan to repay an existing loan, it doesn't take the fact that the person is still under another debt. When we borrow loan, we should learn how to use the money to bring money at least to repay it. But some just borrow for material reason.

 

[Bashbash]

To take a loan to pay another loan is not a very good suggestion because which profit can you make in a day to pay with interest so is not really a good idea because except your business is booming very well ,that is the only way you can do it.

 

[Abigael]

Yes, sometimes people take loans to pay up a previous loan. It happens sometimes due to the first loan extending pay up time and so the interest rates increase. So to stop it from going higher, one takes another loan to pay it up. Which may look reasonable but it ends up being an unhealthy habit. I prefer it best to work hard and increase income in order to get enough money to pay back a loan.

 

[clemxy]

you can pay loan with another debt when you are into a serious business that is yielding a more percentage profit more that the loan interest rate

 

[Good-Guy]

I believe that taking loans is not a good idea in the first place. This is because taking loan increases debt and an excessive debt is never a good thing in the first place. Many people have a harder time paying loans with loans when the lender finds that the other party is already in debt.

 

[btaliat]

I just wish others can do like I do. I don't first of all like taking loan but if the need be. I always take the loans that I can repay conviniently with my own money. So if I don't see money to repay the loan, I will just use the money that I have to repay it.

 

[Deleted member 28127]

In most of cases this is what are things are happening. You get a loan for example to buy some merchandise in order to sell later but what happens in the middle some people are purchasing your product by loan or multiple credits time you didn't get your target income so you may get a new borrow for cover the difference.

 

[Jasmine]

You can pay a loan with another loan in only one condition i.e. you are paying the loan which has high interest rates with the loan that has low interest rates. For instance, you pay a loan that has 9 percent interest rate with a loan having 7 percent interest rate.