Because it is now easily possible to take out several loans at the same time when it comes to fulfilling consumer wishes, it can quickly happen that you lose track or simply do not pay attention that the loans are always taken out at the best conditions. A changed interest rate situation on the market can also be used as an opportunity to reschedule existing installment loans and thereby save money.
How to proceed with a debt restructuring
First you should get an overview of the existing obligations and add up the monthly installments to find out what you have to pay and how high the current credit burden is. To do this, the transfer number must be requested from the banks concerned. In the addition, all transfer sums result in the loan amount that is to be added.
If a correspondingly long term is chosen for the new loan, the monthly charge can often be significantly reduced. Anyone who uses an expensive disposition loan from which they can no longer get out can also include it in the debt rescheduling loan.
However, this only works without problems if there is currently creditworthiness. There are banks that offer their customers as a service to take over all the formalities associated with a debt rescheduling loan. This means that the borrower does not receive anything from the newly taken out loan, but instead gives the new lender the powers of transfer which he then uses to pay off all the loans.
Benefits of debt restructuring
With debt restructuring, a borrower can put their personal finances in order. Here it should best be based on an online loan comparison. If something like this happens in time, over-indebtedness can be avoided. Merging loans can often also save costs if the interest on the new loan is lower than was the case with the existing loan. Debt rescheduling is particularly recommended, but loans from revolving credit cards, which are usually exorbitant in terms of interest, can also be converted into an installment loan on favorable terms.
In order to protect yourself efficiently against over-indebtedness, the overdraft facility should be reduced to a minimum after such a debt rescheduling and a prepaid credit card should be used instead of the revolving credit card, with which one can only pay if there is sufficient credit on the card account.
Not every debt restructuring is approved
As already mentioned, the banks do not necessarily grant a debt rescheduling loan. If the borrower is already in a precarious financial situation because, for example, he has lost his job and is only receiving unemployment benefits or has already given him a loan, it looks bad. In such cases, at least a guarantee is required to successfully carry out the debt restructuring.