Bad Credit Resource Center

This method of loan repayment results in accumulating interest and usually increasingly unpayable bills. If you use one credit card to pay off another, for example, you are paying interest on interest, and paying off the new credit card bill will be more difficult.

This method will also mean that you will always be looking for new credit and new debt to pay off your increasing debts. It makes better sense to get a second job or arrange for a new payment schedule.

Paying off your debts with another debt may help you in the short run - you will not have a late payment on your credit record - but in the long run the larger debt load will make maintaining good credit more and more difficult. The only exception to this rule is debt consolidation, in which all your bills are paid by one lender, who then becomes the only creditor you owe money to.

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