Debt Restructuring Loan

A debt restructuring loan is a great way to redesign financial space. Quite simply, the loan approval is not in all cases. Only those who have the idea of ​​rescheduling at an early stage have sufficient financial flexibility to make a favorable loan. Visit for a summary

Credit for debt restructuring – when is the rescheduling advisable?

Credit for debt restructuring - when is the rescheduling advisable?

A debt restructuring loan, other than real estate, serves to bring together different existing liabilities. The purpose of rescheduling can have different backgrounds.

A possible background for the idea is interest rate development. Anyone who still has old long-term payment obligations, the current interest rates can only use if he remultures. In this case, however, the old contracts should be scrutinized. Often prepayment rates for early loan repayment are agreed. These “penalty rates” could make the project a loss.

Another common reason is the change in personal circumstances. After losing a job it is very hard to get a foothold again. A new career orientation is often accompanied by a significant loss of income. The previously easy to carry rates are thus a burden. By summarizing the existing commitments, the burden of paying installments could be reduced. However, it is problematic, although the purpose of the rescheduling is obvious, to find a suitable lender.

Offers for debt rescheduling loans

Offers for debt rescheduling loans

A loan for rescheduling is particularly often sought as a long-term installment loan. Maturities of up to 120 months are the offer of the banking industry. Nevertheless, it should not be concluded too hastily. Each long-term loan works with a high interest rate and a low repayment installment of the installments. If you finance long-term, you will pay significantly more interest overall. In addition, the credit offers are cheap only at first glance.

If the rescheduling is an adjustment to lower revenues, then credit rejections can not be ruled out. The credit rating is affected by the existing contracts, although these are to be dissolved.

The advantage is who has used a top-up loan. Most top-up credits offer the opportunity to top up for free in the event of a loan merger. Even the originally favorable lending rate may be preserved in some circumstances.

Debt rescheduling or forward loans?

Debt rescheduling or forward loans?

For property owners, the ECB’s low interest rate policy raises the question of whether it makes sense to repay the loan. Alternatively, current interest rates could be secured for the future via a forward loan. A universal council is impossible. The view into the current loan agreements and a calculator are necessary to make the right decision.

Interesting is a forward loan for property owners whose fixed term expires within the next 60 months. You can already provide for the future with a favorable follow-up financing.

It should be remembered that the ECB has announced that it will continue its low interest rate policy in the long term. The follow-up financing – the loan for debt restructuring, will probably be just as cheap in a few months as it is today.

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