Debt rescheduling without early repayment is possible if the mortgage loan already exists and is serviced for over ten years or more. In any case, the rescheduling means that the existing loan will not be renewed, but that the customer decides on a new real estate loan. For the remaining debt then a new annuity loan and thus a renegotiation of the interest rate of the annuity loan is required (rescheduling). Take the time to get several mortgage credit and financing options from different banks!
Debt debt restructuring – how does it work?
For many, whose current account with current account credit is permanently exhausted to the utmost, the debt restructuring pays off first. The installment credit can lead to significant savings in interest costs. Debt rescheduling is a good opportunity for many to tap into the low interest rate and reduce borrowing costs.
Currently, a installment loan of $ 5000 with a maturity of 36 months is available at an annual interest rate of 5.50%. Even consumers with a current installment loan can benefit from favorable interest rates. If an existing credit agreement is replaced by a new credit agreement, this is called debt rescheduling. The new loan does not have to come from the same bank as the first one.
Canceling a current installment loan is relatively easy. For example, with mortgage loans, an exit is usually omitted during the fixed interest period. You can have special luck if the former installment loan was concluded with a fee waiver of the house bank. In this case, you can exit the existing installment loan agreement without any effort.
For the withdrawal from an existing loan agreement, the borrowed capital must of course be reimbursed. If you want to repay the loan before the original agreed period, many loans are subject to so-called prepayment penalties. In the case of a rescheduling, the full repayment is made by the use of a new installment loan. For many, whose current account with current account credit is permanently exhausted to the utmost, the debt restructuring pays off first.
The installment credit can lead to significant savings in interest costs.
However, this saving can be compared with the expenses for the new installment loan. The rescheduling pays no way if the current account only in isolated places in the red. If an existing current account or consumer loan is to be replaced by a new installment loan, it is no different than to calculate with a sharp pen.
The interest savings of the new loan compared to the previous loan should be compared with the expenses of the new loan. In order to make rescheduling economically viable, the effective interest rate of the new loan must be much lower than that of the first. The higher the loan amount and the remaining life of the old loan, the more meaningful it is to take out a new installment loan.
Debt rescheduling can also be a possibility if the installment of the Altdarlehens was too high. If you overcharge the monthly rate, a new loan with a longer term and lower monthly fees can help. However, it has to be taken into account that a loan as a whole grows more expensive as its duration increases.
Note: When applying for a installment loan to replace an existing loan, always declare “debt restructuring” as the purpose. If you specify a purpose other than justification, the house bank may refuse the new credit because the existing credit amount plus the new requested installment credit exceeds your credit rating.