Reddit user with 4 active loans & Rs 30,000 salary asks if another loan is a good idea
A Reddit user trapped in a web of loans asked other netizens on the platform if they should take out a bigger loan to pay the older ones. Read more here!
New Delhi: A Reddit user drowning in EMIs turned to Reddit to seek advice on his finances. They claimed that they were trapped in a web of loans and wanted to know if taking another loan would help their troubled situation. The post triggered several reactions.
In the Reddit post, the user asked, "Should I take loan to end my existing loan?" Further, the user detailed all the EMIs they were currently dealing with. While the user earned only Rs 30,000 per month, their monthly loan payments totalled Rs 22,800 across four active loans. The loans included one totalling Rs 7500, another loan of Rs 5000, then Rs 2000, and Rs 8300 from the State Bank of India.
Redditor asks if they should take a new loan to repay 4 loans
They added that the payments made it difficult for them to have any savings or emergency funds. Speaking of how they use the money left after payments, the person stated that it is used for necessities like food, electricity bills, medicines, etc. They added that they could not afford any non-essential expenses such as shopping or alcohol.
Considering the financial trap they are already in, the user asked if it was smart to take out another loan to pay the other loans off. They stated that SBI was offering a Rs 3 lakh loan. They added that it would help them bring the monthly loan repayment to Rs 8300. The user turned to fellow Redditors to help them figure out if it was going to be a smart move.
Redditors quickly turned on their financial planning brains. One user said it would be wiser to pay off the loans with higher interest, without rushing to take another loan. Others, on the other hand, said the Reddit user should consider taking a new loan as it would simplify their finances.
"If you use the full Rs 3 lakh solely to close your existing debts and avoid taking on any new loans, this could actually help. You’ll reduce your EMI burden and free up some cash flow,” said a user.