Quick & cheap rescheduling with our loan comparison!
In the meantime, one in four consumers in Germany has taken out one or more installment loans. Very many borrowers, however, pay more interest than would be necessary. Especially if many individual small loans must be repaid monthly, the total costs are enormous. It would be much more favorable to combine these loans into one large debt rescheduling loan.
On average, the interest costs can be reduced by 40 to 50 percent. How high the savings will be, however, depends on many different factors. However, the differences in conditions can be very large.
The most important thing in a nutshell:
A debt rescheduling is worthwhile if expensive old loans are associated with high interest costs and there are more favorable loans at better conditions. An overdraft facility or many small loans can also be rescheduled sensibly.
Depending on the clauses of the contract, the redemption of old loans, will most likely be associated with additional costs. But this depends, among other things, on the remaining term of the loan.
A debt rescheduling loan can be applied for quickly and without a lot of paperwork on the Internet. So the way remains to house or. Branch bank saved. With an online loan you can usually save more money. The banks open you more favorable interest rates and greater flexibility.
Modern direct banks guarantee you not only inexpensive conditions, but also offer the option of immediate approval and payment. However, these additional services are usually associated with further fees.
The entire application process up to the approval, takes place online with the VideoIdent procedure and digital signature. Your documents such as identity card and income documents, should be digitized available.
What is a debt rescheduling loan?
Existing old loans can be repaid in full with another loan (rescheduling loan). The borrower then pays off the new loan with better conditions. This is often worthwhile simply because many small loans are each subject to higher interest rates.
A large loan, on the other hand, is often associated with lower interest rates. This can save you a lot of money. It is not uncommon for the interest costs to amount to several thousand euros. Many small loans are often also associated with respective additional fees, which can also be saved when they are combined.
Through a debt restructuring, you can also significantly reduce the monthly installment to be paid off. Your financial leeway and liquidity will therefore increase. Before applying for a large debt rescheduling loan, we recommend to compare all offers of the possible lenders with each other. The conditions vary greatly!
If you have many earmarked loans, a debt restructuring is sometimes not possible. In such a case, you would have to discuss the early redemption with your bank. The respective contract clauses provide information about what you are allowed and what not.
Reschedule the loan step by step
Check current loans
The effort to take a closer look at the old loans, you will not be able to escape. In particular, the credit costs of the current financing, you should look at. In this context, the interest rates, terms and fees are particularly interesting.
Inquire about contractual penalties
In the case of early redemption of an old loan, there may be penalties, or fees are due. Get in touch with the banks of the old loans and try to ask about the redemption and its consequences. Some indications are certainly also noted in the loan agreement. The early repayment penalty is particularly important to note, but more on that later.
Compare interest rates
We recommend that you compare the current interest offers, for example, with an interest calculator. Note, however, that individual interest rates are usually significantly different from what is indicated and are for guidance only. Rather, you should be guided by the 2/3 interest rate of the providers. More information about this, you will find out later in the loan agreement.
Make a non-binding loan request
Applying to several lenders, leads to a higher probability that you will find the most favorable loan. After all, you will receive from each bank an individual interest rate offer, which depends on your creditworthiness or credit rating. Creditworthiness depends. Banks rate them differently in terms of weighting, so personal interest rate offers also vary.
Compare offer & calculate savings
Inquiries at several credit institutions are possible much faster in the digital age than before and are absolutely non-binding. In the further course choose the offer with the best conditions. Now you can calculate the savings by comparing the new total monthly payment with the old repayment.
Take out a loan & have old loans repaid
If you apply for online loans, they can be concluded conveniently and quickly once you have made your decision. With the disbursement from the debt rescheduling loan you now have a sufficient sum available to repay the alkredite.
Advantages of the debt rescheduling loan
You're out of debt faster: If the terms are particularly favorable, you can pay off the old loans quickly with the new loan.
Put money aside: Since the cost of the borrowed amount of money will be less, you will be able to put aside more financial resources. Of course, this is especially true if you have combined many individual loans into one large debt rescheduling loan.
Better financial overview: If many small loans have been combined into one big bond thanks to the debt restructuring, you will pay off only one installment per month.
Lower monthly payment: the rescheduling loan gives you more liquidity compared to paying off multiple old loans, which come with higher interest costs.
Better credit rating: your credit rating will automatically improve if you can pay off the old debts directly and from now on you only have to transfer one installment to a bank. A point that takes on even more weight when the total amount to be repaid is reduced due to better terms and conditions.
Convenient loan application: online loans are now widely available. So you can apply for your loan without much hassle on the internet. In this way, all lengthy postal routes are bypassed, which means that the transaction can be completed within 10 to 15 minutes, especially for small sums. You can use VideoIdent to identify yourself quickly. All your documents should be in digital format in time.
Quick disbursement: many online banks offer the option of immediate disbursement. It is associated with additional fees, but allows the sum to be made available within 24h. The usual time of payment is 3 to maximum 7 bank working days.
Even small sums possible: credit institutions offer small sums starting from about 1.500€ on. If the loan is still smaller, you have the option of applying for a mini-loan.
Flexibility: You can reduce the repayment rate and also agree on a payment break with a bank if money is tight after all. These tools are available to you at almost all direct banks, but they are subject to certain conditions.
What else you need to consider when rescheduling
Early repayment penalty
At first, one might think that the bank would be happy to get the borrowed money paid back early. However, the credit institution misses out on interest gains if the loan agreement is terminated prematurely during the fixed-interest period.
The bank may therefore charge an early repayment fee. In principle, you will be charged for the loss of interest and this can be several hundred to thousand euros for small loans. If the loan is a large one, however, the prepayment penalty can sometimes run into 5 figures. In such cases, a debt restructuring is then no longer worthwhile.
For loans taken out after 11. Special rules now apply to contracts concluded on or after June 2010. The lender can charge a maximum of 1% of the remaining debt as compensation. For such loans, a cost-benefit analysis must be made in order to determine whether a debt restructuring makes sense.
The issue of prepayment penalty, however, has no significance for you if you have taken out a loan without fixed interest rates. Such loans can be repaid at any time. Other rules also apply to construction financing.
Interest charges incurred
Of course, we want to save money with a debt restructuring. So the objective is to find a loan that is cheaper than the old loan. Therefore, you should carefully compare the credit offers and their conditions with each other. This is the only way to keep the interest burden as low as possible.
When searching for a suitable direct bank, you will certainly notice fairly quickly that there are many very low-interest offers available. However, these are minimum interest rates. The interest rates are almost always given individually depending on the credit rating. We also advise you to check the contract documents very carefully.
All conditions must be clearly listed in the contract and all costs incurred must be clearly itemized. This also includes issues that may come up in the future. Important points here are, for example, the special right of termination of the new loan, as well as the debit interest commitment, compensation payments and the residual debt insurance.
Terms and monthly rate
A speedy redemption allows more interest savings. However, the high repayment rate is accompanied by a greater financial burden that you may not be able to bear. That's why we recommend to determine the maximum possible monthly installment and to deduct another 20% to be on the safe side. The risk for possible payment defaults, is much lower with this approach. Of course, this also depends on your personal situation.
If you have determined the possible repayment rate, then this automatically results in the term. If the monthly financial burden and the term do not fit together, because the lender does not want to use it, for example, the term is not correct. not offered, then a reduction of the loan amount must be considered.
Improve credit rating
The best way to save on high interest costs is to be considered particularly creditworthy by the bank with which you want to reschedule your debt. The increase of the creditworthiness always results in low interest rates being offered, as the risk of non-payment decreases for the bank.
Important: Provided that you are taking out a pure debt restructuring loan and do not want to finance any other products or services with the loan, you should include the purpose of use. Direct banks offer the purpose of "debt restructuring" with as well as branch and home banks do. The advantage is then that the loan installment from the old loan is not considered as an expense of your household bill. Rather, it is considered part of the new loan you want to take out with the bank. From a mathematical point of view, this improves your credit rating significantly.
If you own a property, a debt restructuring is usually much easier to carry out, since it serves as collateral for the credit institution. The property we therefore recommend of course with in the application form to indicate.
If you're not quite in a hurry yet, you can check your SCHUFA score before you apply. This is possible once a year without any problems and free of charge. This allows you to check that the existing data is up to date. It happens very often that these are outdated or not correct. If this is the case for you, we recommend that you request the deletion of this outdated data. This will prevent your credit rating from being underestimated.
Maybe you also have general problems with your credit rating and your loan applications are all rejected. Reasons for this can be, in addition to a poor income, also negative and outdated SCHUFA entries. Also in this case you should perform a check. In addition, we advise you to bring a second borrower on board if you have a poor credit rating. Not only to get your debt restructuring loan approved, but also to be able to get better terms due to a better overall credit rating.
Conclusion
Debt rescheduling loan is a normal installment loan that is used for debt rescheduling. Hereby a whole quantity of money can be saved, if the again taken out loan causes lower interest costs than the old credits. The financial monthly burden, can be significantly reduced. The consequence is a higher liquidity and thus a better standard of living. Especially if you combine a lot of old and small loans into one big debt restructuring loan.
The savings potential depends on various factors. Among other things, you should look at the fees for debt restructuring and the prepayment penalty aubeinandersetzen. An important task is therefore to go through old loan agreements and or to agree with the banks of the old loans regarding an early loan redemption.
The credit costs for the debt rescheduling must be known down to the last detail in order to be able to weigh up whether a debt rescheduling is worthwhile at all. You should know the remaining debt amount and the remaining term, as well as the associated costs from the old loans. In contrast to this is the term as well as the effective annual interest rate and the resulting credit costs from the new loan. Possibly also a brisker repayment, to a further saving of interest costs for the new credit can contribute. However, in most cases you have to reckon with a higher repayment rate.