Is taking out a second loan to pay off the previous one a prudent move?

[deucher]

I didn't experience these issues firsthand, but I witnessed many others who did. Since the first loan's payment time had already passed and they would run into issues with this bank, they were forced to take out a second loan from a different bank in order to pay off the first one because they were unable to make enough money to cover it. Because it will continue indefinitely until individuals begin making more money than she has to pay, I believe it to be a vicious spiral.

 

[Riberet19]

The process is simple, incurring debt to pay another debt is simply a very unwise move, you want to solve your problem with the same thing that got you into a problem, I think it is something that no one should do.

 

[Kane]

It depends on how much interest you are currently paying and how much interest you are expected to pay with the new loan. If your new interest rate is lower than the previous one, it is certainly a good move.

 

[jennywhite]

That is very individual, i would ask someone to calculate that for you.
There is an option to contact specialized loan servicing for example and ask for help here.
All depends on the fees you pay in both cases.

 

[Kane]

That's right, your payable interest rate, the loan repayment terms, additional changes such as service charges or fees determine whether debt consolidation is a good idea or not