Whats your opinion taking out a Loan to pay off Debt?

If you are in debt with a lot of different bills it makes sense to get one big loan

, pay off all of your bills and maybe have some left over for whatever if the payments will be considerably less than your monthly payment now.

Always check the interest rates. The bank is always the best. If you get a loan you can probably negotiate a cash settlement with each debt and reduce the amount substantially leaving you the first few instalments paid for. Its not a bad thing to do but you must be careful you don't just add that as a further debt and start again. That's how financial ruin begins, hence your partner being concerned.

Getting a loan to pay off debt is not paying off debt. All you are doing is transferring the debt from one account to another. The terms of the new account may extend out the length of the loan and therfore give you lower monthly payments to make.

This may create the illusion of putting you in a better financial state since you are paying less on a monthly basis.

If you can get a lower interest rate by transfering the debt, then go ahead and do it. You should make every effort to pay additional money toward the loan and get it paid off sooner. Don't use your credit card except for emergencies. Ween yourself off of credit cards by using debit cards.

NEVER borrow to pay off a debt, work to pay off the debt, then NEVER get into debt again, These company's who loan money, do so to make PROFIT. DON'T go there!!!! borrowing money is easy, paying it back isn't, and you ALWAYS have to pay it back, DON'T be a

There is good and bad to both sides of the story...Good..consolidate and pay off all debt then have more money in which to spend... bad.. consolidate and pay off debt then have more money in which to spend.... and make more debt!!! It is all in HOW you use your money, you can continue to pay off your debt and have it paid for in 2-5yrs or consolidate and pay it off now and then pay on the consolidation for the next 3-7 yrs. My advice to you is to get all the information you can before you make your decision about consolidating debt. Even if you pay off one at a time you can probably have them all paid off before you would have paid off half the consolidation

Whats your opinion taking out a Loan to pay off Debt?

By: liza

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