Debt loan to pay your credit.
Are you looking for a loan to repay your liabilities? Do expensive overdrafts and ongoing payment obligations overwhelm your liquidity?
Personal creditworthiness decides which debt rescheduling offers are optimally suited to your individual loan request. Using the example of overdraft facility, we show how large the savings volume through debt restructuring can be.
You will find out which loan offers are suitable for your personal credit rating.
Debt rescheduling – Overdrafting is a priority
The overdraft facility is Germany’s most popular short-term loan. Most house banks automatically grant the possibility of overdrafting. Lending is then fully automated. But, not least due to card payments, some accounts are getting deeper and deeper into the red. If account holders want to reschedule existing loans, the overdraft facility is the most important aspirant.
In contradiction to the key interest rates of the Cream Bank, which are reduced to zero, the house bank correctly collects the overdraft. When the German Company examined the interest rate in August 2015 and discovered up to 17.5 percent interest rate, there was a lot of excitement. The dispo interest boiled up to the highest political levels. “Political elites” promised legal regulations if necessary. Back then it was said by leading banks – the overdraft facility is a short-term loan and will remain at a high interest rate level.
The bankers were right, how could it be expected otherwise? As of May 2016, hardly anything has changed in the MRP interest rate. Overdrafting in Germany still costs between 14.5 and 16 percent, as our own research shows.
Small amounts of debt are worth it – small loans are cheaper than ever
Those who want to take out a loan to reschedule their current payment obligations should give top priority to overdraft facilities. At around 3,000 USD, the average overdraft checking account is in the red. The house bank earns about 450 USD per year at 15 percent effective annual interest rate. If the same amount were rescheduled on a low-interest installment loan, the financing would cost a slim 30.69 USD per year.
With 1.99 percent effective annual interest rate independent of creditworthiness, the loan comparison rewards the debt rescheduling on a small loan. Those willing to reschedule debt can hope for the loan on such favorable terms and only need a net loan amount of between 1,000 and 3,000 USD. The term for taking advantage of the offer must be chosen between 12 and 36 months.
Particularly low-interest and with a long term would currently be 10,000 USD loan to reschedule existing liabilities. With a term of 72 months, an effective interest rate of 3.74 percent independent of creditworthiness would be approvable through a good credit comparison. The loan comparison shows the monthly rate at USD 154.99. The loan calculator states a total of 1,159 USD as financing costs for this debt rescheduling loan.
Find regular debt rescheduling loan – advantages when comparing loans
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Good online loan comparisons are urgently recommended for the search for possible loan providers for regular debt rescheduling loans. Credit comparison calculators are free and easy to use. They offer a quick overview of relevant loan offers and also help to save interest.
Savings would also be made in the perception of offers that the comparison portal has specially negotiated for its visitors. So it happens that the loan comparison is often cheaper to finance than the homepage of the financing bank.
Debt restructuring – what needs to be considered?
The level of the offered interest rate depends on the personal creditworthiness. Only a few people can hope for a good debt rescheduling. Those interested in credit who are not in a managerial position and who are also lifetime officials should look carefully for interest rates that are independent of creditworthiness. For ordinary people, they practically always offer the optimal interest.
It should also be borne in mind that not every current loan should automatically be included in the new loan for debt restructuring. It is important to check whether the old loan can be repaid free of charge at any time. It would also be crucial whether the old credit is protected by credit insurance. Without the guarantee of free loan repayment, penalty interest could be charged. In this case, an interest gain from debt restructuring would hardly be expected.
If there is credit insurance, then the insurance coverage was paid dearly. The RSV cost about 10 percent of the original loan amount. In the event of early loan repayment, the insurance will not be calculated back. Unfortunately, it cannot be transferred to the new loan either. If, for example, the transfer fee for the old loan were USD 11,000, insurance premiums of USD 1,100 would be given away.
Debt loan – difficult financial situation
Debt often wants people who have maneuvered themselves into a difficult financial situation. Existing payment obligations burden household income disproportionately. In this situation, debt rescheduling acts as a silver lining. The term could be redefined by combining the existing loans. Financed over a long period of time, small installments would strengthen liquidity.
The problem is that in the event of a financial imbalance, regular credit providers react very cautiously to debt restructuring requests. Neither house banks nor regular online providers approve risky lending. In this case, major debt restructuring would probably only be granted if additional collateral were offered. A loan with a guarantor for debt restructuring or real estate security would be conceivable.
We recommend that you apply for the loan for debt restructuring in difficult cases through Good Finance. The reputation of the loan brokerage portal is flawless. The loan application addresses banks and private investors who are willing to take risks at the same time. A guarantee can thus be avoidable without having to accept high interest premiums.