What are the implications for taking loans for the purposes of repaying a debt?

[Stardom22]

There are some individuals that operate in a way that they take some loans to repay debt that is currently under pressure.So according to you, can you take loans to service existing loans?

 

[Springtime]

I think taking out additional loan to repay a debt will end up in a vicious cycle. You are always in debt.

 

[Augusta]

Being charged a Lower Rate of Interest. The interest rate charged is usually lower than the current personal loan interest rates.

 

[Kross]

That's how chain of debts really starts. Find a way to plan, earn and pay your debts without having to borrow to repay debts.

 

[Suba]

Repaying a debt by taking out new loans can have both positive and negative implications. This includes debt consolidation, which allows you to pay off all your debts and concentrate on one debt. The repayment period will be extended, making it easier to make monthly payments. However, you could be trapped in a never-ending cycle of debt.

 

[Nomad]

Taking low interest loan to pay high interest loan can actually help you. It is also good to take take long term loan to pay short term loans.