The approach is good, but your debt restructuring should be well planned. Refinancing existing liabilities contains great savings potential, but is unprepared for risks.
Our debt rescheduling guide explains what to look out for. The right debt rescheduling loan is not the same for everyone. Find out how you can go into debt with poor creditworthiness and relieve the household budget.
Debt rescheduling – what exactly happens with a debt rescheduling?
In the event of debt restructuring, existing credit obligations are financed with new credit. A debt rescheduling can affect a single loan obligation, for example reducing the overdraft facility and the interest burden, or rescheduling all loans. Nevertheless, it does not make sense to sweep the existing loans with the “hard broom”. At least not without having to deal with the applicable contractual conditions beforehand.
The effort to look into the old contracts can pay off in “hard cash”. For example, legislation basically allows any consumer loan to be redeemed early. However, the law does not state that loan repayment is allowed “free of charge”. The old lender may charge compensation for the loss of interest incurred, unless the contractual terms allow early repayment free of charge.
Rescheduling loans that were insured against illness, unemployment and death with residual debt insurance is a high loss business. Around 10 percent of the original loan amount was paid for insurance coverage per applicant. The contributions cannot be calculated back, and the insurance cover is also not transferable to the debt rescheduling loan.
Borrowers who reschedule an insured loan are giving away the paid insurance cover. The amount of the “gift” to the insurance company corresponds to approximately 10 percent of the loan repayment amount. If the transfer fee were 5,000 USD, 500 USD would be lost. No debt rescheduling loan can be so much cheaper to offset this loss.
Discover debt restructuring with regular loan offers
Existing loans do not automatically mean that the credit rating for the approval of a debt rescheduling loan has suffered. With a solid income and normal credit history, debt restructuring is not a problem. But, especially with a good credit rating, there are many opportunities to emerge from the debt restructuring as an interest winner.
Installment credit is currently cheaper than ever since the introduction of the USD due to the fact that key interest rates have actually been abolished by the Agree Bank. A free credit comparison calculator is a practical way of comparing the interest rates of the possible offers. For a quick interest comparison, it is sufficient to inform the comparison calculator of the loan amount, the planned term and the purpose.
The program lists all relevant loan offers in real time, sorted by interest. Rescheduling existing loans would be possible at an interest rate that is dependent on the creditworthiness or independent of the creditworthiness. For the vast majority of the population, interest rate offers that are independent of creditworthiness offer the best interest rates. Everyone who is fundamentally qualified to lend pays the same effective annual interest rate.
Choose suitable offers – personal creditworthiness is decisive
Interest rate poker through interest rates dependent on creditworthiness is worthwhile for two groups of interested parties. For people with extremely good credit ratings, for example senior officials. You often get the lowest interest rate. The other group is willing to reschedule, whose credit rating is not in top form. In this case, the bank calculates a risk premium on the interest, for which the loan application goes through smoothly.
Debt rescheduling loans, with rather poor creditworthiness, can quickly lead to a rejection of regular credit providers for applicants. A good alternative for “wobbly candidates” would be to submit the loan application together with a solvent co-applicant. Thanks to the solvent co-owner, the creditworthiness for lending increases overall, the loan approval is possible without problems and without risk premiums.
Debt rescheduling loan in difficult cases – take advantage of advisory services
In credit advertising, but also on the calculator, debt restructuring can act as a “panacea” for the battered household budget. Nevertheless, “debt rescheduling” only makes sense to an extent that is difficult to define.
Interested parties can find professional contacts for debt restructuring in difficult cases at non-profit debt counselors. The help is definitely free and probably even more competent than with some commercial debt restructuring advice.
We strongly advise against so-called “debt restructuring companies” who get the finances in order and at the same time arrange a loan. They often have neither special training nor are they angels. Resisting the temptation to make money in order to provide neutral advice automatically leads to a conflict of interest.
Debt rescheduling – Offers for serious problem loans
With tricky debt rescheduling, the credit brokerage business is very quickly the only viable alternative. The only problem is, which provider is reputable, which loan offers can still be taken advantage of?
A debt rescheduling loan from a risk-taking bank or private financing would be possible. When asked about serious loan brokerage in difficult cases, we advise you to apply for a loan from the market leaders.
Debt-free debt rescheduling for years, that’s what the names centiloan and trucredit stand for as market leaders in serious credit brokerage from private to private. trucredit has the advantage that the access criteria for a loan application are somewhat more moderate. centiloan would be advantageous because a loan application addresses both banks and private investors.