Borrow from one to pay off another
Posted by: info | February 28, 2007
You can get yourself in some massive debt if you choose to borrow money to pay off another loan or lender. You are basically paying double interest for your original loan. Let’s take a look at some fees.
First of all you rack up $2500 in credit card debt. You min. payment is $50 a month. You can’t come up with the money, now what? I know borrow from another lender to pay off this old debt. You may even get an introductory rate. It all sounds good.
You may not know that you are digging yourself in a deeper hole. Some people can get away with this, but most can’t. Your credit may be harmed by the lack of payments. This will sooner or later catch up to you. Most lenders like to see some activity and regular payments being made. What can you do?
Consider calling your lender and lending them know your situation. You may be able to make a reduced payment or send it in a little later. Warning! If you send your payment late you may get a late fee and some negative activity on your credit report.
Do the best you can in this situation. Never buy something you can’t afford. Don’t use your available credit to do your daily activities. If you are doing this, you can’t afford your lifestyle. Seek help from a reputable financial counselor. To seek our help visit the debt relief center at http://www.nationwidebillrelief.com/debtrelief.html.
Posted in: Debt Relief |
4 Responses to “Borrow from one to pay off another”
Comments
You must be logged in to post a comment.
June 4th, 2007 at
Sometimes people have no other option but to get high interest rate loans. I had to get a loan, backed by my paycheck, that had an interest rate of 540%. This cost me $21 for every $100 borrowed. This is a loan with a maximum length of 2 weeks. I would have lost my car without this option, so it was worth it.
June 29th, 2007 at
Credit cards and high interest loans put more people in debt than any other single financial institution.
July 3rd, 2007 at
Great way to take a debt dive.
July 6th, 2007 at
You can get in debt fast this way. People also lose cars, homes and property.