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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?
12 Answers
- oklatomLv 72 years ago
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 YLv 72 years ago
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?
- SlickterpLv 72 years ago
Probably not. If you cannot pay the original loan, how will you pay the original and a new loan? Lenders understand the answer is - you can't.
- Anonymous2 years ago
If another bank is willing to lend you the new loan, yes.
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- Anonymous2 years ago
Children cannot get loans. Adults with good credit often can.
- 2 years ago
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
- AmyLv 72 years ago
If you still have good credit, yes.
But owing more than you can pay will make most lenders not want to lend you more money.
- JudyLv 72 years ago
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
- Anonymous2 years ago
yes, and after enough of that you can consolidate all your loans into one big loan
- Kid MohawkLv 62 years ago
Yes, especially if your credit's improved since taking the first one. It's call refinancing.