Can you take out a personal loan to pay off your debts?

You have contracted several debts and are looking for the best solution to repay them? In your case, some people will have turned to personal loans. But is it an effective solution or are there other more interesting solutions?

Personal loan: an easy credit

The personal loan is not an assigned credit. This means that you can use the money you receive for any purpose because the bank will not ask you for an assignment slip. It is an unassigned consumer loan. Unlike a construction or car loan, a personal loan will allow you to finance any project. You can also use it to pay off your debts. To obtain a personal loan, all you have to do is convince the bank of your choice. To do so, you must present proof of your solvency, such as your latest pay slips or a bank statement showing your savings capacity. If your profile is convincing, you won’t have to wait long to get financing.

Is a personal loan a solution for paying off debts?

Have you chosen to take out a personal loan to repay your debts? If you haven’t yet taken the necessary steps, take a step back before deciding. Note that taking out a personal loan to repay debts is not very advisable by banks. It will only add to your expenses, whereas your basic objective is to have a stable financial situation. If you persist in doing so, you risk aggravating your situation by exposing yourself to over-indebtedness. Of course, the personal loan allows you to have liquidity quickly, but instead of resolving your situation, it will only increase the amount of your monthly payments. You may then find yourself in a delicate situation.

What solution other than a loan?

If you want to repay the debts you have accumulated through your loans, you need to find the best solution. Forget the personal loan because instead of solving your problems, this alternative will only increase your debt ratio. Instead, turn to credit repurchase. This operation, also known as credit consolidation or loan consolidation, consists of consolidating all your outstanding debts into a single monthly payment. With this solution, you pay only one monthly payment. Of course, the duration of your credit will be longer and the amount of your monthly payments will be higher. However, you will have more peace of mind when it comes to repayment because you won’t have to manage several loans. If you want your new credit to be associated with interesting conditions, don’t hesitate to negotiate with the bank that has agreed to buy back your loans.

Who do you go to to save your money?
How does a credit repurchase work?