Not all loan offers are cheap, some lenders charge high interest rates. It is worthwhile to replace expensive installment loans or the overdraft facility with cheaper financing. If carried out correctly, the debt rescheduling promises to save a lot of interest.
But it is not just the cost of credit that can be reduced. If you combine several loans, you also get a better overview of your finances. So there is an end to different residual terms and a lack of overview of the remaining debt of individual loans.
On this page we explain what is important when it comes to debt rescheduling. The focus is on the replacement of consumer credit and overdraft facility. We also deal with the issue of debt rescheduling of real estate loans. In addition, our powerful loan calculator is available to determine the right debt rescheduling loan.
Purpose and purpose of debt rescheduling
Many people pay monthly installments for expensive loans. A typical example is the overdraft facility. While it may be practical, it is also very expensive. But also many installment loans were taken up with an excessively high interest rate, which leads to unnecessarily high credit rates. High interest rates to the lender do not have to be.
The idea of debt restructuring is to redeem such expensive loans early. It is often possible to cancel the expensive installment loan with the previous lender. For this, a new loan – the debt rescheduling loan – is taken out. The renewed borrowing allows the financing to be better tailored to the personal situation. On the one hand, a significantly lower lending rate can lure, on the other hand, it is possible to change the term.
Of course, the popular saying is that it is not good to take on new debt to repay old loans. However, this is not the case for a well-planned debt restructuring. Canceling the old loan amount from the bank promises lower loan costs.
After all, refinancing is not about moving financial difficulties into the future. Instead, the finances are optimized. Switching to a new lender has two major advantages:
If you compare well and find the right debt rescheduling loan, you will benefit from a significantly lower interest rate. With the overdraft facility in particular, it is often effortless to reduce the interest burden by more than half. The expensive loan agreement with a high borrowing rate is left as part of the debt rescheduling. The borrower is financially relieved by the cheaper loan interest.
Sometimes it’s not just a loan. Because consumer loans are so readily available, the temptation is too great in some cases. As a result, some borrowers have to repay several loans, even though they have long lost track of them. With debt rescheduling, all loans (for example, overdrafts and supplementary installment loans) are repaid before the end of their fixed interest period and combined into a single loan.
Debt restructuring process
The first step is to check whether the existing loans can be repaid in a timely manner. This option is available for most installment loans. A prepayment penalty may apply, but the amount is often manageable. More information on this topic will follow in the next chapter. If you want to balance your overdrafted current account, it is of course easier. In the case of overdrafts, credit settlement is possible without observing a notice period.
Then it goes to the loan search. It is important to find out whether there is a cheap debt rescheduling loan with the appropriate loan amount. He has to convince above all with the borrowing rate so that the refinancing results in long-term savings. Our loan calculator provides support in the search for loan offers with low interest rates.
If the right loan for the debt rescheduling has been found, it will be applied for directly and paid out soon. Attractive online conditions apply here.
After the loan is approved, the loan contracts of the old loans are terminated. Nobody should do the other way around. If there is no debt rescheduling loan, the borrower would face great difficulties. It is better to get the loan approval first and then cancel it. The loan amount subsequently paid out is immediately passed on to the old lender in order to balance the credit balances.
Of course, it should be certain that existing loans can be canceled and that the loan amounts can be redeemed. It is therefore important to check the loan amount and the notice period.
Debt rescheduling comparison
Compare debt rescheduling loans now and find cheap interest rates. You determine the loan amount and the duration of the financing, we determine the right financing offer from many loans. The safe way to refinance, which promises a nice saving.