Rescheduling can also help to consolidate all open financing so that in the end only one loan has to be repaid. Anyone who raised a loan a few years ago, which might have been the same interest rate then cheap, should pay attention to current interest rates. In the case of rescheduling, the costs incurred must be taken into account. The rescheduling plan with a new installment loan for the remaining loan amount should be meticulously calculated as you are paying for a loan without the financing item still being available. Real estate financing should be well considered, as such a liability is a long-term, forward- looking contract.
Conversion and cost savings
At the moment, interest rates are quite low. Debt debt provides many with a good opportunity to take advantage of the low interest rates and save on financing costs. There are several reasons for the availability of loans at favorable interest rates. Currently, a installment loan in the amount of $ 5000 with a maturity of 36 months from an annual interest rate of 7.64% available.
For the same amount and the same duration, she received offers between a little below 8 and 14 percentage points of effective annual interest. Even consumers who have a current installment loan can benefit from favorable interest rates. If an existing credit agreement is replaced by a new credit agreement, this is called debt rescheduling. The new loan does not have to come from the same bank as the first one.
Debt debt restructuring
The non-binding request to your bank for debt debt restructuring is not harmful. To optimize the rescheduling offers you should first compare the conditions for possible new loans. Above all, the direct banks give loans significantly cheaper than the branches, according to the journal “Finanztest” in its March 2003 issue.
Once you have purchased a cheap loan, you can also take care of the cancellation of the old loan. You can have special luck if the former installment loan was concluded with a fee waiver of the house bank. In this case, you can exit the existing installment loan agreement without any effort. For the withdrawal from an existing loan agreement, the borrowed capital must of course be reimbursed.
If you want to repay the loan before the original agreed period, many loans are subject to so-called prepayment penalties. The partial repayments (“special repayments”) are based on the credit terms that are handed over to the client upon conclusion of the contract. In the case of debt remittance, full repayment is made by claiming a new installment loan. When does it make sense to repatriate your debts?
For many, whose current account with current account credit is permanently exhausted to the utmost, the debt rem earging pays off first. The installment credit can lead to significant savings in interest costs. However, this saving can be compared with the expenses for the new installment loan. Debt rescheduling is worthwhile in no case, if the current account only in isolated places in the red numbers.
The same applies to the overdraft on credit card.
If an existing current account or consumer loan is to be replaced by a new installment loan, it is no different than to calculate with a sharp pen. The interest savings of the new loan compared to the previous loan should be compared with the expenses of the new loan. A prerequisite for economically sound debt debt restructuring is that the effective interest rate of the new loan is much lower than that of the first.
The higher the loan amount and the remaining duration of the old loan, the more meaningful it is to accept a new installment loan. Even with overpayments of the old loan, debt debt repayment can be a possibility. If you overcharge the monthly rate, a new loan with a longer term and lower monthly fees can help.
However, it should be noted that a loan as a whole becomes more expensive as it matures. For the area of credit insurance (credit bureau) collects data from almost all credit transactions in Germany. Regardless of whether a current account is set up, a vehicle is rented, a mobile phone contract is closed or an installment credit is drawn, the client must agree to a credit bureau clause. When opening a current account, the client must meet the appropriate conditions.
If a loan is to be used, the bank asks credit bureau how the creditworthiness – the solvency – of the applicant is. This can prevent rescheduling. If the financing body of the debt rescheduling loan receives a negative indication from credit bureau, it will reject the loan.
Note: When applying for a installment loan to replace an existing loan, always declare “debt restructuring” as the purpose. Only then can it be ensured that the financial institution can incorporate this fact into its lending decision. If you give another reason for the use, the house bank can reject the new loan because the existing loan plus the new requested installment loan exceeds your creditworthiness.
However, there are only a few well-known credit companies among the providers. credit bureau therefore does not cooperate with Swiss credit institutions. However, this does not mean that over-indebted borrowers are deterred with a loan from a federal financial institution. The Swiss credit institutions also want guarantees that the borrowed capital will be returned. A popular trick of the credit bureau-free lenders is to look forward to a high commission and cost claim.
Often, the conclusion of other contracts – often contracts or life insurance policies – made the condition for the granting of loans. This leads to expenses that can make the loan very expensive. In addition, it is considered illegal to take out health insurance to get a loan. Anyone who has been rejected by a reputable credit institution with his loan application can penetrate even further into the debt spiral with such a credit bureau-free loan.
Even if you’re down to the extreme and none of the banks are offering a debt rescheduling loan, those proposals are the worst imaginable solutions to eradicating the economic woes.