Individual loan vs commercial loan- Which should be paid first.

[Etini Willie]

Individual loans in this context refer to the loans you get from real-time people you know. They range from friends, relatives, etc. Commercial loans on the other hand refer to the loans you get from financial institutions. Supposing you took loans from individuals and financial institutions, which one should you prioritize to pay back quickly? Should you focus on the financial institution loans or the individual loans gotten from people around you?

The reason you might need to try and pay back individual loans is because the people that gave you those funds probably had plans for that money. They may have sacrificed to give you the money. Your continuous holding of the money might be delaying those plans and probably harming their finances. You may have to consider clearing individual loans as much as possible.

Looking at commercial loans, they come at a cost which is the interest. And the point is that the more you keep the loan without payment, the more interest keeps accumulating. So you might want to consider paying up the commercial loans first. It is easier to talk to family and friend for them to understand your plight.

Stuck in this situation, what would you do?

 

[Knowlopedia]

If you have both an individual loan and a commercial loan, which should you pay off first? The answer may not be as straightforward as you think. Here are a few factors to consider when making your decision:

-The interest rate: The loan with the higher interest rate will likely cost you more in the long run, so you may want to prioritize paying that one off first.

-The terms of the loan: If one loan has a shorter term than the other, you may want to pay it off first so that you can be debt-free sooner.

-Your personal financial situation: If you are struggling to make payments on both loans, you may want to consider consolidating them into one loan with a lower interest rate. This can help make your payments more manageable.

Ultimately, the decision of which loan to pay off first depends on your personal financial situation and goals. Consider all of your options and make the choice that makes the most sense for you.

 

[Bisolami]

Individual loans in this context refer to the loans you get from real-time people you know. They range from friends, relatives, etc. Commercial loans on the other hand refer to the loans you get from financial institutions. Supposing you took loans from individuals and financial institutions, which one should you prioritize to pay back quickly? Should you focus on the financial institution loans or the individual loans gotten from people around you?

The reason you might need to try and pay back individual loans is because the people that gave you those funds probably had plans for that money. They may have sacrificed to give you the money. Your continuous holding of the money might be delaying those plans and probably harming their finances. You may have to consider clearing individual loans as much as possible.

Looking at commercial loans, they come at a cost which is the interest. And the point is that the more you keep the loan without payment, the more interest keeps accumulating. So you might want to consider paying up the commercial loans first. It is easier to talk to family and friend for them to understand your plight.

Stuck in this situation, what would you do?

I think commercial loans should be paid first simply because those ones deal with collateral and if you do not want to lose any of your property, make sure that you pay the commercial loan first Becker you pay the personal loan. I think that will be better

 

[saoussen5765]

Both of them should be paid in debt time but having commercial loan means you will have revenue from your work then you could pay them while personal loan is just for consommation so just your salary is the only income to pay it back.