How to avoid applying for a loan to pay another


One of the most common actions of people who are accustomed to applying for loans online is to request a new one to pay the previous one as a result of the generation of debt that they accumulate progressively. However, it is not appropriate to do this to cancel previous debts because the debt will rise markedly and it will be increasingly difficult to face the debt.

Pay outstanding debts whenever we request a loan

Therefore, the priority is to pay outstanding debts whenever we request a loan, so while it is being carried out we must take measures to save and not exceed any unnecessary expenses.

As an alternative we can get the money through a family member or friend, since it involves less risk than borrowing from a private company, however in these cases we must bear in mind that it must also be returned and it is our moral obligation to do so. Another alternative is also the reunification of debts with our financial institution although there are very good conditions to analyze when doing so since what we are doing is for the bank to study how to unite all outstanding debts into one, with greater number of installments and for longer.

See which debt is the one that should be paid

In cases where there is more than one debt, we must make a list and see which debt is the one that should be paid before and do so in the shortest possible time to release that payment and not accumulate more and more interest. Normally before a possible debt between a credit card and a normal one, it is necessary to first cancel that of the card because it is the one that generates more interest. To do this, you can request an advance of the payroll in the financial institution in which it is domiciled and we can thus cancel payments like these urgently without generating too much debt. Along these same lines, there is also the possibility of negotiating an extension, especially when we know that we will not be able to pay the loan and will probably give us a longer period of time. In the same way, you can also request the credit review and get smaller fees in exchange for extending the loan repayment term. Remember that to get benefits as advantageous as these we must have had a good economic history without any overdraft or prior debt.

Requesting a quick credit

Last but not least, we must mention the alternative of requesting a quick credit to try to cancel another debt since these types of financial products are of a smaller amount (up to a maximum of approximately 800 euros) and can be returned in Very comfortable and simple installments and can help us to relieve outstanding debt. For this, in
Good Finance. We have a state-of-the-art tool consisting of a fast online credit comparator that provides each user with the one that best suits their possibilities and thus is more comfortable to return.

Now, what happens if we have already failed to pay the debt and become delinquent? This is very common since this first step of being included in these lists is what is most quickly done to put pressure on the debtor and therefore cannot request any additional financing (except if they are fast loans). To get out of these lists, the debt must be canceled and a certificate requested from the company with which we have already paid the payment stating that everything is already correct to be able to send it to the delinquent file and that it is released as quickly as possible because such and As we have talked about in previous articles, you get in very fast, but you get out of them all very slowly

Remember that from the first unpaid installment, you start charging late payment interest that accumulated to the interests of the original debt can cause a great financial problem, so that these expenses are a priority.

Finally, in the case of not being able to face the payment of the debt in any way, the last option is to declare insolvent in which a contest of creditors is held and the lawsuits filed for non-payment are stopped and also the embargo Until the process is over.

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