If you have a debt rescheduling, take out a loan on better terms

What is debt rescheduling?

What is debt rescheduling?

A debt rescheduling of existing loan obligations can be profitable if it involves a lower financial burden on the borrower. Debt rescheduling means taking on a new debt with which an existing debt is to be settled. As a rule, either several liabilities are combined into a single one, or an existing loan (e.g. consumer, real estate or disposition loan) is replaced by a new loan at better conditions. For example, if you have taken out several smaller installment loans at frequently different interest rates, you can save a large amount by rescheduling all individual liabilities into a single loan at a low interest rate, and you also have a simplified regulation with just one due date Rate.

In addition, consumer loans with a high interest rate and a short term can often be rescheduled into significantly cheaper installment loans with a lower interest rate and a longer term. Due to the constant fluctuations in lending rates on the market, it makes sense to compare the individual lending institutions. The differences in the interest rate for loans are immense, so that debt rescheduling can often lead to savings of several thousand dollars. A comparison between lenders who offer a so-called interest rate-independent interest rate is particularly worthwhile here, since this is often much cheaper for the debtor, especially when there is high debt. Customers tend to get away with a credit-dependent interest rate less favorably, since the interest rate advertised by the bank often differs significantly from the actual individual interest rate.

Credit interest rates

Credit interest rates

This includes the Credit Bureau score and past credit behavior. Credit-independent interest rates are meanwhile offered by many banks, so that the advertised interest rate is actually identical to the one ultimately used for the rescheduled loan. Particularly high savings can be achieved through debt restructuring in real estate financing. Here, the expiry of the fixed interest rate is the ideal time. A usual course includes fixed interest rates for half of the contractual term. A comparison is useful here, in which significantly more profitable conditions can often be achieved by rescheduling the so-called final financing. Even an interest rate relief of just half a percent on a real estate loan of, for example, 100,000 dollars over a ten-year term saves 5,000 dollars.