Paying debts by asking for loans, is it convenient?

emdadshab May 30, 2020

Before you pay past-due debt asking for a new loan, think twice. Making this decision could be fatal to your pocket.

Paying off debts can become an awkward situation when we don't have immediate liquidity and the payment date is approaching.

It is here when we begin to manage to get around the situation and come out of it triumphantly. From the outset, we know that with the monthly income it will not reach us.

What is the first thing that comes to mind? “I am going to ask for a new loan, do I pay off my debt and save time to pay the new debt later. Nothing worse can happen. "

Paying debts by asking for loans



What is happening? Considering that Mexicans owe 10 times more than they earn, according to reports from the Excelsior newspaper in December 2018, the scenario where the people who borrow to get out of debt will end will be little encouraging, detrimental to their pockets and their history in the credit bureau.

 

In the best case, a person can overcome the bad streak and keep up with the payment of their debts. But other scenarios are repeated much more than the aforementioned and that do not have a "happy ending".

Antonio's story will help us better illustrate these scenarios.

Antonio asked for an online loan to obtain money in less than 24 hours and thus be able to make the payment of his credit cards, in addition to some debts that he left pending a few months ago when his salary was lowered.

He made this decision thinking of paying part of his debts with the loan, to then face only a single debt with his savings and income. However, things did not go as expected. Although he covered some debts, he wasted his savings, other debts continued to rise due to default interest, and the loan he asked for ended up not being paid because his economic situation did not improve. She fell into a serious situation of over-indebtedness and she wondered daily how I can get out of debt.

Antonio's story is one of many. Although the cases and circumstances are different, taking out loans to get out of debt will always be a bad idea if our financial situation is not stable.

So the obligatory question is how to get out of debt if I don't have the resources to do it immediately and without having to ask for loans or credits?


When the debts are overflowing and there is not enough liquidity to pay them but still there is the will to face them to improve our economic situation, one of the most viable options to get out of the mess is to go to a Credit Repair.

 

Repairers like Debt Cure allow people in serious debt to pay off their debts with their resources, paying less than they owe and under a personalized savings plan based on their current economy, precisely so as not to affect their finances.

How does it work? The repair company develops a settlement program that is divided into three parts: Financial Consulting, Savings Strategy, and Debt Settlement.

  • Financial Advice: People are legally and financially advised and their level of indebtedness is also diagnosed to know the real amount of their debt or debts and thus be able to establish a starting point.
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  • Savings Strategy: Based on each person's level of over-indebtedness and the ability to pay, a personalized monthly savings plan is developed without affecting their finances. These savings will be made over a certain period and with what is collected the debt will be settled.
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  • Settlement of debts: While the monthly savings are carried out, the repairer will negotiate with creditors (banks, department stores, finance companies, and acquirers) to get the best discount on the total of her debt and thus settle it at a much lower cost.

Once the best possible discount has been agreed, the repairer will proceed to settle the debt with what was saved during the program. Likewise, a letter of no debt or settlement letter will be delivered, endorsed by the creditor institution.

It is worth mentioning that the repairer takes care of all the necessary paperwork so that the client is as comfortable and calm as possible while the program lasts and ends with his debt. In short, people should not worry about anything more than making their monthly savings.

If you have an over-indebted problem and want to solve it, click here and receive a solution to your problem.

In conclusion, taking out a loan to pay debts is like trying to cover the sun with a finger. Do we save time? Yes, but the only thing we will be able to do is lengthen the debt spiral and worsen our economic situation.

The recommendation that we always make in Cura Debt is never to stop paying debts no matter how difficult your situation is. You can save month by month and use these savings to pay your obligations. But when the situation is already complicated, you are paying the minimum and you do not see the light at the end of the tunnel because there is not enough money to pay the outstanding debts, it is best to go to a Credit Repair.

Keep an eye on our content and give your finances a 180º turn.
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