Well, I have to clarify that personally I have never had any loan or debt in my life so this thread has nothing to do with my experience but intends to find out how people in loan/debt deal with the problem. Let's say you take loans from a bank and sometimes for whatever reason, you can not pay the debt on time, then you borrow money from other channels. Sure this works for a certain period but later bad things may happen, you have to postpone the payment and struggle with finances again. Isn't this a vicious circle ? How would you deal with the problem ? I am all ears.
Indeed that taking loan to pay back previous loans is vicious cycle which should be addressed by preparing a long term workable plan to come out of this challenging situation. The following measures can help to address this issue:
- Don't live beyond your means.
- prioritize to pay back loans.
- Negotiate the terms the terms of payment with your creditors.
- Seek professional help to workout a payback plan.