Interest is the tip of the credit scales. They determine whether a loan is expensive or cheap. In view of the current low interest rate phase, the market is currently holding top conditions. This is the ideal time when you still have to service an expensive contract and want to save money. Reduce the monthly burden with a debt rescheduling and our loan comparison. More of this story: ca-walnutdesigns.com
- A debt rescheduling lowers the monthly costs : thanks to the low interest rates, you pay a lower rate – or you are debt-free faster.
- With debt rescheduling, you can bundle loans : Pay only one loan installment by replacing several existing loans. That creates order in the finances.
- Bring the checking account to a plus with rescheduling : Overdraft facilities are usually very expensive. With a cheap installment loan, you owe money and save money.
- Balance the credit card account with a debt rescheduling: installment agreements for credit cards usually go hand in hand with unfavorable conditions. An installment loan is cheaper and relieves you.
Debt rescheduling calculator
What is debt restructuring?
Debt rescheduling means that you can replace one loan or several loans with a new, cheap installment loan. In other words, you take out a new loan and pay the existing debt with the money. This is possible at any time and is currently available. Because: While savers are annoyed by the persistently low interest rates, you can look forward to being a borrower. Interest rates for normal installment loans are still at an extremely low level. Instead of four or five percent as a few years ago, today you sometimes pay less than two percent for a loan. So it pays to think about debt restructuring.
What do I have to consider when rescheduling?
What you need to look out for when rescheduling depends on what type of debt you want to pay with the new, low-interest installment loan.
If it is an installment loan, a so-called prepayment penalty is due for early repayment. The amount has been capped by law for loans that were taken out after June 10, 2010. The compensation is based on the remaining term and relates to the remaining debt. In the case of more than twelve months, the compensation claim is 1.0 percent. Up to twelve months it is only 0.5 percent. Here one has to calculate whether the interest savings outweigh the costs for early loan repayment. Important: If the loan agreement was signed before June 10, 2010, the respective agreements with the bank apply and you should definitely speak to the bank to have binding figures on hand.
If the overdraft facility is to be replaced or the credit card account to be settled instead of an installment or small loan, there are no additional costs. You can save a lot of money here. Because an overdraft facility costs an average of around 10.0 percent debit interest. The situation is similar with credit cards with installment options. The installment loan is up to eight percent cheaper. This is noticeable on the account.
What are the benefits of debt restructuring?
First and foremost, debt rescheduling offers financial benefits. If the existing loan was taken out at times of higher interest, you pay more than for a new installment loan. Means: You benefit from the lower interest rate. The bottom line is that you pay less. This is noticeable through a cheaper rate. Or based on the term, which is a few months shorter.
In addition, if you repay not just one, but maybe two, loans, you can structure your finances better. Instead of two installments, you only have to pay one, since only one loan has to be serviced. You should not underestimate this advantage. Those who lose track of their own finances are more likely to become over-indebted. This also applies if you are deep in the red when it comes to overdraft and credit card. With debt rescheduling, all you have to do is focus on one loan – and save money too.
Does a debt rescheduling have disadvantages?
Disadvantages only arise if the prepayment penalty is higher than the savings from the interest rate differential. Before you start thinking and signing a new contract with our loan comparison, you should do the math or ask the bank what the costs are.
Conclusion: There are many reasons for debt restructuring
Lower interest rates, lower rates, shorter terms and better organization of finances: A debt rescheduling has many faces, all of which smile at you. Instead of bothering with an expensive overdraft facility or an old installment loan, you should use the low interest rate phase for yourself. Our loan comparison is the first step.