12 Questions To Ask Yourself Before Taking On A Loan
- By
Julia Austin
Source: Muslianshah Masrie / Getty
Am I using this to get out of debt?
Whenever possible, don’t take on more debt to get out of debt. Before taking out a personal loan to make a late rent or car payment, see if you have family who will help you out. See if your car lender or landlord will cut you some slack. See if you can take on extra shifts at work. See if there is anything you can sell to make some extra cash. Taking on debt to pay off debt is a very dangerous cycle. And, the odds are, if you’re taking on a loan to pay off other debt, your credit score is likely already low, meaning you’ll get a terrible rate on that new loan.
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