It’s easy to spend your money on anything that comes across you without measuring the impact on your finances. What are your priorities? Are you saving Do you have how to pay your bills? Borrowing to pay a debt is a matter that you have to think carefully.
Is it convenient to pay a debt with another?
It seems like a good idea at first, but you’re just repeating a pattern of misconduct: Spend more than you can afford. It is also an incongruity, since you settle an account with a person or entity, to owe money to another person or entity.
The financial education of Mexicans is debated when the Good Lender platform, specialized in loans from person to person, announced that more than 50% of Mexicans acquire a loan to pay nothing more and nothing less than other debt.
Borrowing to pay a debt is only valid if you are in an exceptional situation, if not, it is advisable to opt for other options.
If you have a lack of liquidity at some specific time, asking for a small loan can get you out of trouble, however, you should not abuse this resource.
The most advisable when borrowing to pay a debt is to accommodate our expenses to the extent of our income, or better, decrease expenses and thus have more income to pay debts.
Perhaps the new loan has no early repayment commissions or has some benefit that will allow you to get rid of this new debt faster. Just remember to think with a cool head.
Because in the end you would be paying interest on two debts. There are always other ways to take, borrowing to pay a debt should be your last option.
Even if it’s difficult, if you can renegotiate your debts with your creditors, you probably don’t have to pay interest and commissions. If you can refinance your debts it would help you pay smaller fees for longer, but you must pay more money in total.
Just be aware of how you manage your money and if it is worth what you are consuming. Asking for help from a financial advisor would never hurt.