Taking out a loan is very easy these days. Not only that they are offered everywhere and that even retailers actively intervene in the granting of loans and financing. The good economic situation also makes it possible for many consumers to be able to afford one or more loans. Because if you go to work and earn a decent income, you are also able to take out a loan and pay it on time.
This quickly led to the accumulation of several loans that had to be serviced at the same time. And often the first doubts quickly arise whether this is even possible over the intended period. Because looking at each loan individually with regard to its financial burden is very simple and usually doesn’t hurt either. However, if you then add up the debit of all loans, it is not uncommon that it is clear that you have undertaken a little financially. The desire to be able to reschedule the loans is quickly born.
How does debt rescheduling work?
Before you reschedule your loans, you should calculate the new loan amount. So take a close look at the amount of outstanding commitments to the donors. Also check the costs of a possible debt restructuring. Add all of this together and use the amount calculated in this way to find the right loan.
We recommend that you use a loan calculator for your search, which you can find here on the Internet. It helps you to determine good loan offers and shows you not only the effective interest rate, but also the monthly charge and the term of the new loan. In this way, you can easily check whether the loan offer suits you and meets your expectations. If you have decided to do so, you can apply directly via the Internet. Because the loan calculator automatically connects you to the bank that provides the loan.
Which loans can be rescheduled?
A debt rescheduling is always worthwhile for you if it is provided for in the loan agreement. The bank should give you this option free of charge so that you do not have to bear unnecessary rescheduling fees. If no early redemption and thus debt restructuring is noted in the loan, the bank will charge penalty interest of 1 percent of the outstanding loan amount and a processing fee of variable amount. We therefore always recommend that you clarify in advance whether a loan can be rescheduled and under what conditions this can be carried out. Not that in the end debt restructuring costs more money than the old loans in their entirety.
What are the requirements?
In order to be able to repay loans, you must have a good credit rating. Because, like when taking out the loans, the debt rescheduling takes a close look at how creditworthy you are and whether you are even able to take out such a high loan.
Your Credit Bureau will of course also be asked, who might raise one or two questions regarding the loans already entered. It is therefore best to state from the start that you want to take out the loan in order to be able to reschedule the other loans. Not that the existing loans weaken your creditworthiness to such an extent that no further credit is possible.
Allow the new bank to replace the old loans with the new loan. This not only saves you a lot of work, but also shows the bank that the new loan is really for the repayment and you didn’t just say it so succinctly. After all, you are not required to tell the bank what you are using the money from for a simple installment loan. Many borrowers are therefore very creative in their information in order to increase the chances of a loan. However, if you instruct the bank to repay the loan at the same time, it will believe your information and will be much more open to borrowing.
By the way: Do not cancel the old loans until you have signed the new loan agreement so that there is no overlap and you do not have any credit in the end.