A rescheduling makes sense if it creates more favorable terms. Thus, several loans, but also a large loan can be rescheduled. The motives to repatriate a loan are different. Bank interest rates change each year, making a loan taken out a few years ago seem expensive at the present time. Also a financial bottleneck, which is to be solved by a rescheduling, is considered in a loan for debt restructuring.
Which loan can be rescheduled
But not every loan is suitable for debt repayment. A dedicated loan, such as auto finance, is out of the question for a loan to repay. While a loan without a purpose can easily be used for refinancing. When debt restructuring, however, the debtor should absolutely state that he would like to replace his existing liabilities with a new loan. As every request for credit results in an insight into the Schufa, the banks see the current debt in the Schufa information. If the borrower at the bank declares that the newly borrowed loan is intended to replace old loans, the borrower gives the lender the offer that only one creditor will continue to be serviced. However, a debt repayment loan is also often taken to reduce monthly installments. Many have taken out financially with loans and try with a rescheduling, with only one creditor to serve, to supplement their budget.
Problems with debt restructuring
Many consumers put themselves in the debt trap. First, the washing machine is bought on credit, then comes the expensive TV and sometimes even the holiday on credit is financed. Quickly here comes together a loan amount that brings the debtor into financial Aus. If unexpected events occur, such as unemployment, the loans can no longer be paid. Here is a loan for debt restructuring necessarily. If the creditworthiness is given, each bank will also provide a loan for repayment. Problems can arise if the credit rating is no longer sufficient due to unemployment. In such cases it will be hard to find a bank. The debtor can try it at his house bank, where he may have been a customer for a long time. With a set off of the income against the expenditure then perhaps a creditworthiness results.
When the credit suffers
Those who suffer from payment problems because the financial situation has changed do not necessarily have to settle the problem with a new loan, but can agree with the lender on a deferral of the loan. Similarly, a loan term extension is an option to adjust the installments to the current state.
It is not so rare that the debts a borrower has are immense and are growing over his head. If loans have already been canceled and negative entries in the Schufa, a loan for repayment can not save anything. In this case, the debtor should turn to a professional debt counseling service.
Perform interest rate comparison
Many borrowers still have the chance to reschedule because interest rates are still low. Who decides now for a rescheduling and who also finds a bank, which should perform an interest rate comparison before rescheduling. The data the calculator determines shows how much money can be saved each month. It is important to pay for a debt restructuring on prepayment costs, which entail some early loan repayment. Here, the loan agreement should be read in detail before the rescheduling. There are also statutory provisions for a prepayment penalty. If the current loan has a term of more than 12 months, the prepayment penalty may not exceed 1.0% of the outstanding loan amount. If the term is shorter, it may not exceed 0.5% of the remaining debt. Often a rescheduling is completely free. Information is provided by the loan agreement.
Other types of debt rescheduling
Not infrequently, it is the expensive credit line that the customer wants to repost. He can convert the disposition credit into a installment loan. Who has overdrawn his account, knows how high the interest to book. This type of debt restructuring creates great savings potential. The overdraft rates are around three or four times the current installment loan rates. Studies have shown that consumers who use the dispenser are more likely to be at risk. The danger is that the credit line is not to be paid as the installment loan in monthly installments. It can last practically for a long time without it having to be repaid. The bank earns lavishly on these interest rates.
Anyone looking for a mortgage debt restructuring should pay particular attention to the prepayment fees. The follow-up financing of a construction loan gives the borrower the possibility of a rescheduling in order to obtain better terms.