Selling your assets at cheap rates to repay a loan?

[Bookwormlux]

A lot of people are currently in the mess of loan companies and they are currently in a situation whereby it will be very difficult for them to be able to raise the required amount of money and settle this loan companies .
Most of the time they still have a lot of bills on their head to settle like payment of electricity utilities, their children school fees , transportations, and so many other things coupled with the loans they have in mind to pay .

People like this are usually caught up in this very critical situation and some of them may even decide to sell their top assets at very cheap rate just to see how they can settle these loans .

I usually do not believe in this, because it will make you to regret later on when you realise that your assets will have sold at very better rates than how you sold it, just for the purpose of how to say to your loan .

It will be better for you to try to see how you can raise the money through other means so as to payday loan .

Would you sell your assets at cheap rate just for the purpose of settling a loan?

 

[Abigael]

Selling your assets at cheap rates in order to settle a loan is a very desperate move. Which so many people take when their repayment dates are due and don't have any other source of income to repay the loan.

I think you should only do this if your repayment date is due and the interest rate will be added highly if you miss the date. Otherwise, it is always better to pay the loan using other means. This is because you will eventually regret selling your assets at very small rates.

One thing you can do is that you could talk with your loan lender to pardon your missed repayment date. That way, they don't increase the interests and gives you more time to look for the money. So many loan lenders will listen to such a plea.

Personally, I always prefer to take a loan with an already existing plan on how to pay it back. This is especially great when the loan is meant to raise you some profits that you can use to pay back the loan.

If the loan does not bring you profit, then at least plan for an earning method that will raise funds for your loan repayment. Maybe work for someone offline or look for an online earning method.

 

[Mika]

Not just individuals and businesses even the countries are selling their assets at a cheaper rate in order to repay loans. This usually happens because individuals, businesses, and even the governments treat loan money as free money, they do not use the loan money to do the right thing, they don'rt invest for income and profit-generating businesses and projects, therefore, their loan money does not generate income, and they cannot pay back their loan, and end up selling their asset at a cheaper price to pay back their loan. If you look in your society, you can see a lot of individuals around you who sell their assets for a cheaper rate in order to clear loans. Selling assets to clear loans is also common practice with businesses. YOu can see many examples in your country. Interestingly, some countries are selling their national assets to pay back loans. Sri Lanka burrowed a lot of money from China, they could not use the loan to earn a better income for themselves. Since they could not generate revenue from the Chinese loan, they could not pay back the loan in time, therefore, they ended up giving one of their busy harbor to the Chinese government.