There is a need for action to reschedule individual expensive loan models, such as the overdraft facility, the organization of finances and the relief of the household budget.
With information and offers, we help you to reach your debt rescheduling goal as easily as possible. At the same time, we identify hurdles that make debt restructuring pointless or even a risk.
Repay Loan to Debt – Debt Rescheduling Why?
Loan to pay off debt offers the opportunity to refinance expensive loans at low interest rates. Loan aggregation and refinancing of the remaining debt will pay off faster or the total monthly installments will be reduced. New finances ensure that the freely available budget is easier to allocate. There are many good arguments in favor of occasionally taking the time to rethink your own loans.
Just like in everyday life, once credit decisions are made, they are not automatically permanently correct or the best solution. If the income increases, the current installment loan could be paid off more quickly through special repayment. But if the household situation is poor, part of the monthly agreed rate cannot simply serve to consolidate the household budget. The overdraft facility increases, thus the monthly interest charge.
With the loan to pay off debts there is a serious way out when the rate burden is depressing. The debt rescheduling reduces the financing costs. Nevertheless, the new monthly installment payment does not automatically increase. Payments already made are taken into account in the debt rescheduling loan. The new term to be adjusted now makes it possible to adjust the monthly charge to real solvency.
Debt restructuring – avoidable misinterpretations
Not every measure recognizable as a meaningful loan restructuring can be easily implemented. For example, unemployment or a serious illness lead to drastically reduced income. Unfortunately, household expenses, rent electricity, water and other payment obligations cannot be easily adjusted. The approach of at least being able to reduce ongoing credit costs sounds promising, but is still difficult to implement.
No bank offers a self-responsible loan to pay off debts for recipients of ALG 2. Credit institutions are similarly cautious in the event of illness. On the one hand, sickness benefit could probably secure payment in installments, but only for a limited time. What comes after that, unemployment benefit, a disability pension or disability pension is unclear.
In addition to false hopes, rescheduling debt-backed loans is one of the avoidable misinterpretations. A lot of money was spent on insurance protection when the loan was taken out. About 10 percent of the debt rescheduling corresponds to the equivalent of the contributions already paid. In the event of early loan repayment, they are neither calculated back nor would the paid insurance cover be transferable to the debt rescheduling loan.
Debt restructuring loan – regular loan offers
The debt rescheduling of existing short-term loans is considered to be generally recommended. This includes the overdraft facility, the credit card overdraft, but also other liabilities with a high effective interest rate. When searching for a debt rescheduling loan, it should be clear to everyone that any existing loan commitment reduces the creditworthiness of the loan. Nevertheless, a special loan does not have to be used for debt restructuring.
With a clean credit bureau, a secure income of a reasonable size that is subject to social security contributions, regular credit remains possible almost without exception. Most cheap debt rescheduling loans come from a free loan comparison calculator. Credit comparisons allow simple interest rate comparisons and offer a wealth of additional information.
For “difficult cases”, the loan calculator shows debt rescheduling alternatives at noticeably higher, mostly credit-dependent interest rates. Flexible interest rate structure enables the interest rate level for the loan sought to repay debt to be adjusted more precisely to the real credit risk. Instead of requesting additional credit protection, or alternatively rejecting the loan request, an adjusted risk premium ensures uncomplicated lending.
Use advisory services – successfully complete difficult debt restructuring
Not every debt rescheduling is as easy as rescheduling 3000 USD overdraft on installment credit (1.79 percent effective interest rate) with a good credit rating. Designing the right debt restructuring concept can overwhelm the average person. In the case of high debts, it is no less problematic to see whether rescheduling is even worthwhile. In difficult cases, non-profit debt advice centers offer free and competent support.
An independent specialist calculates the debt rescheduling and reveals any weaknesses. We strongly advise against similar-sounding offers through intermediaries. The “free” advisor is not independent. He earns his money only if he arranges a loan to pay off debt. Out of understandable self-interest, he cannot give unbiased advice.
Loan to repay debt – serious financing difficult debt restructuring
People who hesitate too long with their debt rescheduling, whose “debt level” is not in a “healthy” ratio to income, find it difficult to obtain credit. The problematic starting point is recorded by the score, after which regular loans are decided. It shows the recognizable credit default risk. Against this background, the legally required secure lending can only be demonstrated if the individual case examination refutes the score.
In connection with credit to pay off debts, there is often talk of risk credit or special credit. A “real” risk loan, as was conceivable from any branch bank 20 years ago, is no longer granted by commercial lenders today. (Lessons from the banking crisis). Nevertheless, advertising fuels the hope of credit. The press reports almost monthly on the negative consequences of dubious loan brokerage offers.
But, the credit market continues to offer serious alternatives that allow real credit risk. We are talking about credit from private to private. The legal peculiarity of paying off debt in privately financed loans plays an important role. Private donors are not obliged by law to secure lending. For the reliable framework for borrowing, we recommend Smava as a credit portal with an impeccable reputation.