Rescheduling installment loan comparison – January 2020
Almost everyone has ever taken out a loan and quite a few consumers are even tied to several loans for which they pay different interest rates. The bottom line is that it all adds up, so it is advisable to carry out a comparison as to whether there is an online loan for the debt rescheduling.
Debt rescheduling can either convert an existing, expensive loan into a new, cheap loan, or several loans from different banks can be combined into one overall loan at one bank and at more convenient terms. This saves a lot of costs.
How does debt restructuring work and when is it worth it?
Example: You pay off a loan with a fixed interest rate of 8% pa, the remaining term is 6 years. The monthly burden increases due to changing living conditions and is almost no longer bearable. A debt rescheduling is advisable if there is a loan offer in which the bound interest rate is lower for a term of 6 months. Many “small” loans with high interest rates can also be combined to form a new loan, which also offers far better conditions through suitable offers and gives the borrower more breathing space. The debt rescheduling is worthwhile under favorable conditions for both high and low loan amounts, which is why an overdrafted overdraft account that is constantly in the red can be a case for the debt rescheduling. This can be achieved with the online loan for debt restructuring.
Conditions for rescheduling and any costs
Getting out of a loan agreement is not that easy. If you want to terminate an existing loan contract prematurely, e.g. for a debt rescheduling, you are often faced with a problem if this is not explicitly stated as a possibility in the contract. The bank with which the credit agreement exists can meet the request for early loan repayment, but is not obliged to do so without further ado.
If she says yes, then the so-called prepayment penalty usually arises. This term defines the interest loss that the bank suffers from the premature termination of the contract. In the case of loans with a long remaining term and high loan interest, the borrower has a lot to do. These costs are then usually added to the loan for the debt rescheduling, which logically increases the loan amount.
Direct banks are waiting with favorable conditions for the debt rescheduling
Direct banks offer online loans for a wide variety of credit options. For example, there is a free-use installment loan that can be used as an online loan for debt restructuring. This online loan is available from numerous direct banks for amounts between USD 2,000 and USD 50,000, with terms between 12 and 96 months. With a fixed borrowing rate that is independent of creditworthiness and is far below the interest rate for the current loan, borrowers can save a lot of money and sleep through the night again. Because permanent money worries are incredibly burdensome and take away a lot of quality of life.
Conditions that the online debt rescheduling loan should contain
If you want to replace one or more old, current loans with a debt rescheduling, you should also pay attention to special conditions in the new loan offer:
- Are special repayments possible to repay the loan early?
- Is there a special right of termination?
- Can the monthly rate be changed or adjusted in the event of changing living conditions?
- Are rate breaks possible when things get really tight?
Compare the borrowing rate and the annual percentage rate, here too costs are noticeable.
The credit comparison helps you to find the best deal.
Here’s how to do it
If you are considering debt rescheduling and have selected offers, first ask the banks with which there are ongoing loans whether they agree to the debt rescheduling / redemption and what the prepayment penalty is. Once you have done that, you can submit a loan application online to the preferred direct bank.
The application form also contains information on debt rescheduling loans from the relevant providers. Depending on the handling, the new bank will automatically replace the old loans by transferring the loan amount directly to the corresponding banks or you will receive the required amount and pay the creditor banks yourself.