Would you like to reschedule your current loans? What is the goal of debt restructuring? Lower loan interest rates, lower monthly payments or a better financial overview?
Our guide will guide you to debt restructuring, which is probably the most advantageous solution for you. You have to invest some time and work in your refinancing project. Half-hearted or uncontrolled credit rescheduling can quickly become expensive.
Debt Debt – Prepare any serious debt rescheduling
If you want to reschedule your loans, the preparation begins with the study of the old contracts. A debt rescheduling can only pay off if the old loans have not been taken out with residual debt insurance (RSV). If you were to reschedule an RSV – insured loan, you would lose the insurance cover even though the contributions would not be calculated back. With an average of 20 percent of the loan amount that you have already paid for your insurance coverage, bad business.
The second point to keep in mind when reviewing your old loan documents is in the fine print. In principle, consumer loans can be redeemed at any time, there is a law for this. The law does not state that early loan repayment may be made free of charge. In many old contracts there is a clause that the bank is entitled to compensation in the event of early loan repayment. The loss of interest or part of the loss of interest is calculated by early loan repayment.
If you want to reschedule old expensive loans to save interest, this is the “sticking point”. A debt rescheduling is not worthwhile in many cases if the obligation to pay compensation has been agreed. Please calculate exactly whether the debt rescheduling still pays off for you. Only in the case of very old contracts that were concluded before the time of low interest rates does this calculation still work today.
Debt restructuring – Determine the loan amount for the debt restructuring loan
Over time, the original loan amount decreases due to payments made. The repayment offers scope for the installment of the new loan. This is the starting point why a debt rescheduling can reduce the monthly installment burden. It would of course be important to know the actual transfer fees so that the new loan can be applied for optimally. The old lenders provide exact figures on request.
Inquire by phone or in writing about the transfer fee on a key date specified by you. As soon as the requested information is available, you know the required loan amount for the notified debt rescheduling loan. The right loan offer for debt restructuring is still missing. Debt rescheduling is particularly low-interest via the offers from the loan comparison.
Regular debt rescheduling loan – save interest with a good credit rating
From small loans to overdraft rescheduling to comprehensive debt rescheduling loans, the loan comparison lists the possible loan offers. It is important to pay attention to two things for the inexpensive financing of large loan amounts. An RSV is a good thing when insurance coverage comes into play. Nevertheless, we do not recommend that you take out an RSV for large loan amounts.
The RSV costs about 20 percent of the loan amount in insurance fees. That money is definitely lost. An alternative is to correctly measure the debt rescheduling loan based on the term. The rate burden should remain bearable in the event of unemployment (ALG1) and sickness benefit. With ALG2, loan repayment is generally no longer conceivable. Most residual debt insurance companies exclude this case. ALG2 is therefore not an argument for the RSV.
If you reschedule loans, objectively speaking, low rates offer better protection. The second requirement that you should watch out for is the credit terms. Please conclude a contract that allows special repayments of any amount free of charge several times a year. This ensures that you can shorten the actual repayment period even with free funds.
Monthly transfer the money that they would otherwise have raised for higher rates and RSV to a savings book. So it is ready for special repayment in good times and does not go under in the household budget.
Debt restructuring difficult creditworthiness – what should be considered?
Sometimes it is advisable to reschedule debts, since the lack of liquidity puts a disproportionate burden on the household budget. But, with a difficult credit rating, it is difficult to find a lender. We do not recommend so-called “professional debt restructuring” by commercial financial advisors or credit intermediaries.
If help is needed, non-profit debt counselors are the safest point of contact. Consultation costs nothing. A non-profit debt counselor does not have the advantage of one-sided advice that an intermediary could have.
Non-profit debt advice centers cannot offer a loan, of course, but instructions on how to process the documents. Debt rescheduling is practically only possible in a tight financial situation if there is order in the “mountain of debt”. Banks approve the debt rescheduling loan more easily when all the facts are on the table. Alternative offers come from private when commercial loan providers fail to reschedule.
Debt loans – appeal to private investors
The strengths of private loan offers are evident in a difficult credit rating. Private investors set their own standards for their lending. At a serious level, private lenders can be contacted via Cream Bank and Astro Finance. Both portals are regarded as reputable credit brokers when sustainable problem solutions are required.
Debt rescheduling via the loan brokerage portals works according to a simple scheme. The prospective customer publishes his loan application free of charge on one of the platforms. Interested investors submit bids. If a sufficient number of rescheduling financing bids are received and accepted, the loan is approved. A bank takes care of the further processing.