When repaying a loan it may become necessary to borrow more money. This money may be needed to make a purchase, or there may be an opportunity to consolidate an existing loan and benefit from a better interest rate on new borrowing. What options are available?
Asking an existing lender is a possibility; there might be the option of taking out another loan with them, or withdrawing money within an existing loan agreement. Another option is to seek out a loan from another lender. This may be an attractive option if a withdrawal option is unavailable, or if the other lender offers a cheaper interest rate and the opportunity to save money.
Borrowers should ensure they would be able to meet any additional repayment obligations prior to taking out another loan, though there is also an obligation to the lender to ensure they are providing credit responsibly.
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