Taking loan to repay another loan?

[Bookwormlux]

This is a very funny situation, but that is a reality when you consider the lives of some individuals who have gone so deep in taking loans .

They may have tried other methods of raising money to see how they can repay whatever loan it is there owing, but they see that it is not going to work out and so they have no option than to try to see how they would then collect more loans to settle the ones that are already outstanding .
Sometimes, you have to just understand with them because they are usually finding it hard to settle their current bills and still be able to recover from the effects of settling an outstanding debt .

I am always of the opinion that people should try as much as possible to make sure that did not take long at all, but even if you decide to go that path, try and maintain a high sense of discipline that will enable you to not take much than you can repay .

When you start collecting loan for one company to settle another loan company, you are getting yourself in a bigger mess than you ever thought possible .

What do you think?

 

[Abigael]

Taking loans to pay another loan is a very funny situation for sure. But it is something that happens so many times to so many people. Most people who are financially stable and are in bad debt usually do this frequently.

Being in bad debt means having taken loans without a plan on how to pay them back. Which so many people do so many times. Then their only option becomes taking another to repay that loan. For most people, it becomes a cycle of getting to debts frequently.

People who decide to take loans to pay back another loan could also be facing the trouble of not having enough money left after paying their bills and expenses. They just earn enough for their bills and nothing more to pay back a loan. Which shows that they were not really prepared to take the loan in the first place.

I totally support your idea that people should try as much as possible to earn better income. This will prevent them from taking loans. Moreover, whenever they take loans, earning a higher amount of income will enable them to earn enough money for their expenses and for paying back the loan.

 

[Augusta]

Your submission is the reality on ground, people are doing a lot today and you wonder what they are thinking using one loan app to pay for another loan app. This is more like robbing peter to pay Paul and the chain continues.

one thing with getting loans is that it can be addictive and I think this is what some people suffers from. When you continuously depends on getting loans you would soon run into debt and that's the truth. This loan comes with even high interest and I wonder why some people even fancy it. I think it is high time that people learn to live with what they have and leave borrowing indiscriminately.

Again this loan app comes with humiliation it you don't pay your money on time. so it better one desist from it.

 

[sincerem]

I have the option to take more loans up to 50k based on my local country's fiat values. But I won't go on taking the loan, because their interest rate is high, I don't want to entangled myself with such kind of scenario where I'm taking loans all the time with mountain to climb in order to make out with it's repayment based on the time scale of the deadline. I believe in saving and investing wisely to keep up with my daily spendings which is summed up due to everyday bill accumulation. I decided I won't be taking loans when it is not worth it. Loan should be taking when you have nothing left, and we should take what we should avoid too, when it comes to repaying it. Taking of loan have really put lots of people into issues, due to the mockery which the loan company subjects them into. When you borrow loan and you don't pay on time here in my locality, the loan companies will subject you to state of mockery, accusing you of stealing and calling you all sorts of dreaded names. That's why I don't engage my time taking loans. I prefer saving up, and cutting down my needs.

 

[Ayuba Ernest]

When you think if such scenario, you begin to ponder why would one even take a loan he isn't able to pay?. Well, even the frustration of the economy and other heavy task one has to do would drive you into loan.

I know a lot of people who rely on loans to carry out businesses and never paid back. Some may even run away due to fears of getting traced or arrested. Borrowing loan is not anyone's option. But there are some times one has to attend to emergency needs and thereby opting in to loans and borrowing apps. Back to you, it is definitely a bad idea to borrow to repay back loans. You're just creating a loop and thereby increasing your debt over time. Before borrowing, you should have a detailed budget on how and what to use the loan for. Improper planning is one the factors that leads to such situations thereby making no room for improvements. I always advice my friends to stay away from loans and loan apps, don't punch above your weight and engage into something you can't finish. If you want to take small loans, get a good friend from who you can borrow from. That I think is the best way to avoid a loan loop.

 

[Jasz]

I would have said you can never be too careful when it comes to money, so take that extra loan and make sure you pay it off as soon as possible, but It's a very funny and risky idea to take a loan to repay another loan.

You'll be paying interest on what you borrowed in the first place, and if you don't pay it back, you'll end up paying that interest as well.

It's also not smart if you're going after a loan for an expensive purchase—say, buying a car—and then using the money to pay off an existing loan. If you can't afford the loan on its own, why not just pay off the car?

If you do decide to go this route, make sure that your credit score is pristine before taking out any new loans. That way you'll have less risk of having your credit score impacted negatively by this type of transaction.

 

[Alhamdu]

I will never give anybody the advise of collecting a loan when he or she is already owing. This is how you accumulate loans and they become too hard for you to settle.

But regardless, it depends on what you'll use the money for and what profit you'll get
So before taking that decision you just have made analysis.

 

[Suba]

It's not an empty story or a fairy tale, but it happens a lot to people around the world and I often read complaints from people who take loans to pay off loans, and the borrower will be trapped in a vicious circle. Although for me it's not surprising because currently there are many online loans available with very easy terms, we only need an ID card and phone number and in about 5 minutes the loan has been liquidated and entered into our bank account. Because the debt must be paid, then there is no other way for the debtor. must find the best way, for example selling valuable assets such as cars, motorcycles, gold jewelry etc. to pay off debts. second they have to manage finances and live frugally. And most importantly do not take debt except for additional business capital.

 

[Carpon]

This is a very dangerous habit and it really affects one's finances. Now imagine collecting loan and being unable to pay and then deciding to take another one to pay. This invariably puts you in a state of perpetual loan collection and you'll probably never get free from the bondage of loan collection.

And if you are used to collecting loan, it gradually becomes a habit and you find it hard to quit at some point and even without a good reason you will find yourself collecting loans.

And also, there will be a time when you will be unable to even settle your loans because the more you collect loans even for that purpose, you will still use part of the money for something else. This makes the amount that you owe generally to be increasing with every loan you collect.

Personally I don't think this is a nice idea and it has grave consequences on finance.