A few years ago, interest rates on loans were even higher. Perhaps you are now like some borrowers and have made several loans over the years, each of which you pay off at a different interest rate? If you signed variable rate contracts, interest rates have most likely risen and not fallen, which can be a huge burden on any household. Basically, it shouldn’t be.
Debt restructuring as the only alternative
A debt rescheduling is suitable for everyone who either has a loan at high interest rates or several loans at different conditions with different banks at the same time. For example, if you pay off a car loan at 5% and an overdraft loan at 13%, it is worthwhile to combine these loans into a single low-interest loan with, for example, 3.5% interest. In the end, those with lower interest payments can significantly reduce their monthly burden.
These conditions must be met for debt restructuring
The prerequisite for this is that your credit contract contains an option for early termination or redemption. In the case of contracts with variable interest rates, this is provided for by law. With fixed interest rates, it is not possible in all cases and is regulated individually in the contract. The best thing to do is to read this in your loan documents.
In the event of early termination, you still have to expect payment of a prepayment penalty to the bank, which will be charged as a fee for the lost interest. As a simple calculation, the total fee should then be lower than the other original interest payments and the savings you have with a new cheap loan, so that it ultimately pays off for you. In most cases this will be the case.
Find debt rescheduling loan and cancel contracts
If you are able to terminate the existing contracts properly and on acceptable terms, you must find a provider for the individual debt rescheduling loan at the best conditions before rescheduling. To compare the loan rates with the existing ones and to offset all costs, it is best to use specialized comparison portals where you can get the offers available on the Internet with just a few clicks.
A popular and reliable provider is our partner Spin Lender, with whom you can make a comparison quickly and safely on the comparison portal with little effort and who can display debt rescheduling loans at the best conditions. The processing and subsequent conclusion of the contract can be regulated almost entirely online on the platform. You can find the Spin Lender portal right here.
You can also search for loan providers for debt rescheduling on our website using the integrated comparison calculator, which is also provided by our partner Spin Lender. You should be able to find the best offers in no time.