Taking out a loan to repay a debt, is it a good idea?

loan to repay a debt

By taking out a loan to finance a project or make a purchase, you place yourself in debt. That is to say that the bank lends you a sum of money that you must repay later. This debt situation can happen at

These credits are calculated to be repaid monthly and over a certain period of time. However, we do not always control situations and sometimes it happens that we have to accumulate several debts or find ourselves in complicated financial situations and repaying a debt becomes difficult.

In this case, there are several solutions:

This last solution may seem strange and yet, it is possible to obtain a personal loan to repay your debts ! The personal loan has the advantage of adapting to your personal needs and you can use it as you see fit. Each personal loan has different characteristics, so by comparing the different offers, you will quickly identify the one that suits you the most.

However, repaying a debt with a bank loan may involve certain risks. We explain to you how to make the most of it and avoid falling into the traps.

How to find the best loan?

The main objective is to find a system that will allow you to repay your debts according to your income and your lifestyle.

By subscribing to a consumer credit, you will obtain a release of funds and you will be able to repay all or part of your debts. On the other hand, keep in mind that this consumer credit will also have a debt value to be repaid. You have to be careful not to fall into a situation of over-indebtedness , which can lead to an inability to be able to repay all of your debts.

List your debts and establish a budget

Good organization is the key to success. Organize a list of your debts with their amounts, their purpose, their duration, as well as their interest rate. This will allow you to see clearly and to be able to establish a budget of your expenses.

A monthly budget will help you pay off your debts. By clearly establishing your essential expenses per month such as:

you will be able to save money on your non-essential expenses. These savings can help you pay off your debts.

Pay off your debts that have the highest interest rate, because they are the ones that cost you the most. By prioritizing them, you offload these large amounts more quickly.

How to find the best loan?

First, you can compare the different types of loans and the deals they offer. Then choose a loan that will have a lower interest rate than your debt. Prefer bank loans without proof, which will allow you to obtain funds without justifying the repayment of your debts. The personal loan is certainly the best solution. It is paid to you in one go and allows you to finance all your types of projects. It is an “unrestricted” loan, that is to say that you can use the sum as you wish. They offer loans ranging from €200 to €75,000, as well as relatively low and fixed interest rates.

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