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Phoenix6265

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Personal loans: refinance or multiple loans
Is it best to refinance a current loan or pay it off and apply for a new one?

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Need more information.

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What loan are we talking about? What's the interest rate? How long is the payment plan?

How much is the loan you're talking about? What is your take-home pay? 

What other financial priorities do you have, besides this loan?

Why are you thinking of refinancing?

It is always best NEVER to borrow money, except for a house or business, as majority of people don't have the large amount of cash to buy it at once. The borrower is the slave to the lender. Once you're in debt, it is BEST and EASIEST in the long run to pay it off as quickly as you can. The longer you have a loan, the more money you'll have to give to the lender in the end because of interest. Why let the lender change the original price of an item you purchased initially? Most of the time, that item will depreciate and your loan amount will appreciate? That doesn't make sense! If you walk into Best Buy to buy a laptop which is $1500 out-the-door NOW but told that you'll have to pay $1700 out-the-door later, which would you choose? That's the concept of borrowing. You pay in the present but for an item of the past.

Save money for the item. Who knows? By the time you have saved enough, another newer, better item might be up for purchase. You're not getting into debt and not paying for something which is past its prime yet still have payments on it. Stay away from debt as long as you can. That's the best way to get ahead and build wealth.

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It is best to live within your means.  Read the articles obn this site so you can learn how credit works and how to iomprove your score. Your life will be so much better when you do.

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