Can you take out a loan to repay a loan?
If one was about to go into the red and miss a loan payment, would it be possible to take out a smaller loan to make the main loan payments?
If one was about to go into the red and miss a loan payment, would it be possible to take out a smaller loan to make the main loan payments?
oklatom
Sure, you can keep taking out new loans to get further in debt if you want to, then you will have more loans to fall behind on. Not a good idea.
Casey Y
Sure..but who is giving you the second loan...? Even better, if you are about to default on one loan...who is going to give you MORE money and another loan on which you can default?
abdullah bin
Sometimes life brings surprises. If you can’t make payments on one or more of your loans, it’s best to take action sooner rather than later. Moving quickly helps you minimize the damage to your finances. Perhaps more importantly, the eventual cleanup is less stressful when you prevent things from getting worse.Sometimes the solution is easy. For example, if you can’t afford your car payments, it might be possible to sell the car and switch to a less expensive (but safe) vehicle—or even do without a car for a while.
Unfortunately, things aren’t always easy, but several strategies help you stay on top
Judy
You could try for a personal loan, but if your finances are in bad shape, probably wouldn't qualify...It might be better to ask the lender f you can stretch out the repayment
Anonymous
yes, and after enough of that you can consolidate all your loans into one big loan