Can I take out a loan with debts?

If you are in financial need, taking out a loan can sometimes be a good solution. For example, you can pay important bills and / or make a purchase that you absolutely can no longer postpone. It may happen, however, that in the course of time you already have several debts in your name, but nevertheless end up in need of money again. In such a situation, it is not always possible, or simply irresponsible, to apply for a new loan.

Apply for a loan from a bank

Apply for a loan from a bank

The moment you want to borrow money, you can of course go to your own bank and apply for a loan, but if you still have one or more loans outstanding, this can often result in nothing. After all, your bank, like all other lenders, may be of the opinion that this extra loan will undermine your repayment capacity and may therefore entail an excessive financial risk for the loan provider.

For that reason, most financial institutions will not be applauded if you submit a loan application to them while you already have debts in your name. Every month you will also have to meet the payment obligations of the previously accrued debts. As a result, the total income that you receive every month will come under a certain amount of pressure and will increase even further with a new loan. The chance that you will no longer be able to pay off your debts at any given time will certainly be lurking.

Tip! Simulate different loans:

If the bank would grant you a new loan, there is a chance that (part of) the money that has been lent to you will not return. For the bank, this means a financial loss and is generally considered unacceptable. For that reason, it will also make little sense to submit a similar loan application to another bank or financial institution because this lender is also usually unwilling to take such a high risk.


CKP databases

When assessing most loan applications, banks and other financial institutions will be required by law to perform a (often very time-consuming) check at the Central Individual Credit Register (CKP). At the CKP, after all, the various lenders are registering all loans and credits granted in our country and provided with a certain code. On the basis of this information, certain government institutions (such as the tax authorities) and lenders can see whether a loan applicant can borrow money in a responsible manner. This is because the databases also record arrears and cases of default.

Although many people still think that the CKP was created primarily to protect the lenders, it will certainly benefit the individual borrower. After all, if irresponsible borrowing behavior occurs, alarm bells will ring and a new loan will not be granted so that the chance of even higher debts with official lenders can be limited. However, the credit history of a borrower will continue to work for a certain period of time because even after the debt has been paid, it will remain visible for some time for institutions and organizations that have access to the CKP databases.

Apply for a loan without the intervention of a bank

Apply for a loan without the intervention of a bank

If you do not want to, or can, go to a bank for a loan, then you can of course also try your luck at another lender. In practice, this does not always mean that you are more likely to succeed because many of the other financial institutions will also make an accurate assessment of the financial risk they run when money is lent to you. In many cases there will even be a check at the CKP to check your credit history. Applying for a loan without the intervention of a bank will therefore not always produce the desired result.

In addition, as a borrower you sometimes take unnecessarily high risks by working with people or organizations that want to borrow money outside a bank. For example, you may be dealing with fraudulent lenders who impose impossible conditions on the granting of a loan. You can think of the payment of an extremely high loan fee, the payment of unauthorized costs or a very limited duration of the loan. By taking out a loan with these types of lenders you can borrow money while you have other debts outstanding, but whether you will actually be helped with this is questionable. Often you will only maneuver yourself further into the financial problems and you will start to worry more and more.

Securely borrow money with debts

Securely borrow money with debts

However, there are also a number of ways to securely borrow money while you have other debts outstanding. For example you can:

  • request a loan from family or close friends,
  • request a red position on your current account at your bank,
  • use a credit card,
  • take out a mini loan.

Borrowing money only from a family member or close friend can often be seen as really beneficial because these people often do not, or considerably lower. will charge borrowing costs. The other ways to borrow money in a safe way can, however, be called relatively expensive. Not only will you be confronted with a high interest rate on the outstanding debt or a high loan payment that you have to pay per contracted mini loan, but specific conditions can also be linked to the repayment of the temporarily made available money. For example, you will always have to redeem a mini-loan again after a very short term (plus a hefty loan fee) and you will have to take into account a possible zero if you want to be red at the bank. The latter means that you must have eliminated the red position at a predetermined moment.

Is it justified to borrow money with debt?

The registration of loans and credits with the CKP was created, among other things, to protect the borrower against himself and his or her irresponsible borrowing behavior. After all, it will not be wise in all cases to build up a debt if you still have to pay off one or more loans. Even if you want to take on the new debt to be able to pay a repayment to prevent payment problems. You are going to fill one financial gap with another so that the borrowing costs can continue to accumulate. In other words: you will eventually no longer see the forest for the trees and you may become entangled in a complex web of payments.

Despite the financial problems that will lurk if you start borrowing money while you are already in debt, there will still be people who take out loans with unofficial lenders, such as family members, friends or even strangers. Not only will they have to bear more and more financial burdens and their monthly available budget will come under increasing pressure, but they can also be confronted with downright undesirable situations. This may be the case, for example, if money has been borrowed from an unreliable lender that charges a variety of vague costs or imposes impossible conditions on the loan.

Even if you do work with a reliable lender, in many cases it is not justified to borrow more money if you still have to pay off debts. Before you start doing this, it is good to ask yourself whether you can actually repay the loan without any problems and whether you actually need the loan to solve your money shortage. As soon as you come to the conclusion that taking out another loan can put you in financial trouble, you can no longer (fully) meet your other payment obligations or if you already know in advance that you cannot guarantee the repayments, then it is absolutely up to you recommend to cancel the loan immediately.

Be honest with yourself

Be honest with yourself

If it concerns your finances, and therefore also if you have debts and would like to take out a new loan, then it is important to always be honest with yourself. The moment you turn a blind eye to yourself, you will later also pick the sour fruit from it. Even when the temptation to take out a new loan is very high, you are advised not to be fooled and to sign a loan agreement like a headless chicken.

You also need to be realistic when it comes to your repayment capacity. No matter how much you would like to take out a new loan, it is not realistic to think that you can lead a healthy and pleasant life with virtually nothing. Extremely economizing on, for example, your daily shopping will certainly not be desirable. After all, the products that you have purchased with borrowed money cannot be eaten in many cases, nor can you protect your body against all kinds of hardships that may result from payment problems or even non-payment. In this way, before you realize it, you can even fall from the rain into the drip and become deeply unhappy. Honestly daring to face your financial situation, on the other hand, you will often not only save for a lot of misery, but also rather throw a structural solution in your lap so that you may even be able to put your money back in order.

If you look at your money matters in an honest way, but you no longer know how to handle them in the right way, then you have to gather all your courage and look for help. This does not mean that you have to hire a professional. After all, you can also explain your situation and ask advice from a family member or close friend who you trust and who you know does not endanger your privacy. If you also fail to get your finances back on track this way, you can still (possibly together with this family member or close friend) seek advice from an expert in this area, such as a social worker who has focused on persons with financial problems.


In most cases it will not be easy to take out an additional loan with an official lender if you have not fully paid off one or more debts. After all, most loan providers will find the financial risk that they will run, by borrowing your money, unacceptable and therefore resolutely reject your application.

But even if you don’t want to take out a loan through the official channels, you can often question that. These debts must also be paid off and will therefore put a certain pressure on your monthly available budget. It is therefore quite possible that you are constantly confronted with the consequences of the outstanding debts for a certain period, for example because you are no longer able to carry out certain activities because there is simply no money left for that.

If you have already built up debts in the past, you should carefully consider whether you can still, and want to, take out an extra loan. You will then again commit to certain payment obligations and you will be confronted with the consequences every month. Before you take out a new loan, you should also check whether your repayment capacity is not affected and that you may not be able to make ends meet with your monthly income. You do this by:

  • add up all your income,
  • then deduct all fixed and variable expenses from this,
  • deduct a buffer of one hundred euros from the outcome.

That way you can see what you have left over each month to pay off any new loans. Only when you have a good picture of your financial situation in this way can you responsibly take out a loan or wipe it resolutely off the job. As a rule, you would do well to first fully pay off the outstanding debts before you take out another loan. It is even better to arrange your financial situation in such a way that you no longer have to borrow any money and can even regularly put aside some euros to cope with unexpected problems (or to be able to pay for nice things again)

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