4 ms·

paying off with new debt is paying off... Debt cycling and consolidation is absolutely a valid way to handle your debt.

• OutOfHere 7mo ago
  It's legally valid, but it carries with it all the problems of long term debt, which is the point. There is a reason why one can't pay off a credit card with another credit card.
  • usefulcat 7mo ago
    > There is a reason why one can't pay off a credit card with another credit card. Isn't that exactly what a credit card balance transfer is? https://en.wikipedia.org/wiki/Credit_card_balance_transfer https://en.wikipedia.org/wiki/Credit_card_balance_transfer
  • senectus1 7mo ago
    in the corporate space this is super common and makes a lot of sense.. you sell debt at one rate, find a better rate deal that lets you pay it off later and trade one less favorable debt for the new better terms debt. the company I work for has always done this very successfully.. is now a multi billion dollar multi national.
    • OutOfHere 7mo ago
      Yes, debt refinancing is common for corporations. It doesn't however excuse an indefinite debt. I maintain that a debt held for more than a generation (30 years) is a forecast sign of failure to come.