Would you like to reschedule existing loans, save interest or create additional liquidity for the household budget? In principle, a well-executed debt restructuring can enable debt relief goals through interest rate relief through to the restart of finances.
With information and offers, we would like to help you achieve your goals. In line with your personal creditworthiness, you will learn what is important for debt restructuring, what hurdles are lurking and how to overcome them.
Debt credit – what is always worth it?
People who reschedule existing loans are hoping for benefits from refinancing. Debt relief is often mentioned in the case of debt restructuring. With debt relief, nobody borrows money to the borrower, but the debt relief refers to lower financing costs for future interest payments. In the rarest of cases, the desire for debt relief is fulfilled by rescheduling existing installment loans.
Debt restructuring of expensive short-term loans is practically always worthwhile. First of all, the overdraft rescheduling and the rescheduling of debts on the credit card would be suitable for debt relief efforts. Statistically, everyone who regularly uses their overdraft facility has around 3,000 USD in permanent debts on their checking accounts. He pays around 12.0 to 14.5 percent APR, of course depending on the provider.
If debts were added to the credit card, the average interest rate would be even higher. At 13.5 percent, the average citizen pays 405 USD in overdraft interest annually. If 3,000 USD were financed as an installment loan over a 12-month period, debt rescheduling would only cost 1.79 percent APR. – In USD 28.93 interest costs. This small calculation example shows why debt rescheduling is always worthwhile with short-term loans.
Debt installment loans – what should you watch out for?
The interest rate level of the key interest rate has not only recently reached record lows. Whether the key interest rate was financed at 0.5 percent or 0.0 percent today has hardly any effect on consumer credit. Interest rates paid are based on the arithmetical credit risk. If personal creditworthiness has not changed radically since the loan was taken out, for example, a negative Credit Bureau entry has been deleted, hopes of deleveraging come to nothing.
Debt rescheduling in this case can make sense to relieve the household budget of high monthly installments. By realizing the installment payments already made and adjusting the term, the monthly debt service charge is reduced. With this objective in mind, it is advisable to study the old contracts in more detail before the loan is repaid.
Repayment of credit early is permitted by law at any time. Nevertheless, all unused costs included in the remaining debt are not automatically reversed. A typical example of a failed debt restructuring would be to reschedule insured installment loans. Around 10 percent of the loan amount was paid as insurance premiums for the residual debt insurance. Usually they were co-financed.
In any case, these contributions will be lost without replacement if the insured loan were paid out prematurely. The insurance protection would also not be transferable to the new debt rescheduling loan. Debting debt in the amount of 5,000 USD in residual debt costs about 500 USD per borrower. Couples who often apply for credit together lose 1,000 USD of money already paid.
Debt restructuring despite Credit Bureau – difficult terrain
Despite Credit Bureau, advertisements often represent debt in debt in iridescent colors. The fact is, despite Credit Bureau, real loan offers are limited to a good handful of specialist providers. Despite Credit Bureau, credit is granted with relatively high risk interest premiums. In spite of Credit Bureau, the debt rescheduling loan is only granted if the individual case verification proves credit security. Nevertheless, the interest burden can quickly reach the multiple level of a comparable regular loan.
For this purpose, the small loan just mentioned can again serve as a rough benchmark at 1.79 percent. Without Credit Bureau, a comparable small loan currently costs 11.12 percent APR. – It would cause 6.25 times the financing costs. Our recommendation for a major debt restructuring despite Credit Bureau is to seek serious help from a non-profit debt counselor.
His service of neutralizing the debt restructuring costs nothing. The quality of advice, on the other hand, is usually very high for debt counselors working for the public benefit. We urgently advise against similar-sounding offers through intermediaries. Even if the advice is provided free of charge (be careful with home visits), the advisor only earns if he provides credit. Neutral, open-ended advice is thus effectively excluded.
Debt credit – suitable offers for creditworthiness
Regular debt rescheduling loan from a bank or savings bank is just one option to get a low-interest debt rescheduling loan. If the credit rating is good or very good, free credit comparisons lead to the low-interest regular debt rescheduling loan. Nevertheless, not all debt restructuring requests are subject to good credit ratings. Finding loans becomes more difficult with depressing debts, low incomes or an uncertain professional future.
If bank credit appears to be too expensive, debt rescheduling via private lenders could lower financing costs. The portals Good Finance and Best Lender have the best references for reliable brokering of credit from private donors. Both portals are considered the market leader for private loan brokerage and have been working scandal-free for years.
Debt loan in case of difficulties with expensive bank credit, we recommend that you submit the loan application via Good Finance. In addition to private donors, banks are also involved via the portal. This gives you the choice of who can finance your debt rescheduling loan.