What actually prevents people from paying off old debts with new debt money? /u/Lonely_Solution_5540 No such thing as stupid questions
What actually prevents people from paying off old debts with new debt money? /u/Lonely_Solution_5540 No such thing as stupid questions
I’ve seen the joke that debt is circular often, and that the IRS “hates this trick”. I know it would be a stupid action to pay off your old debts with new with money from a new loan, but why is it an issue? As far as your credit is concerned you “always pay back your debts”. How would it work if someone just repeated that cycle forever until they got on their feet and legitimately paid back their last debt? What stops you from doing this?
submitted by /u/Lonely_Solution_5540
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r/NoStupidQuestions I’ve seen the joke that debt is circular often, and that the IRS “hates this trick”. I know it would be a stupid action to pay off your old debts with new with money from a new loan, but why is it an issue? As far as your credit is concerned you “always pay back your debts”. How would it work if someone just repeated that cycle forever until they got on their feet and legitimately paid back their last debt? What stops you from doing this? submitted by /u/Lonely_Solution_5540 [link] [comments]
I’ve seen the joke that debt is circular often, and that the IRS “hates this trick”. I know it would be a stupid action to pay off your old debts with new with money from a new loan, but why is it an issue? As far as your credit is concerned you “always pay back your debts”. How would it work if someone just repeated that cycle forever until they got on their feet and legitimately paid back their last debt? What stops you from doing this?
submitted by /u/Lonely_Solution_5540
[link] [comments] I’ve seen the joke that debt is circular often, and that the IRS “hates this trick”. I know it would be a stupid action to pay off your old debts with new with money from a new loan, but why is it an issue? As far as your credit is concerned you “always pay back your debts”. How would it work if someone just repeated that cycle forever until they got on their feet and legitimately paid back their last debt? What stops you from doing this? submitted by /u/Lonely_Solution_5540 [link] [comments]