A loan for a debt rescheduling is always considered if you either pay too much interest on your existing loan or if you want to combine several loans so that you only have to pay one installment. After all, when rescheduling a debt, you can agree a longer term with the bank so that you also have to pay a lower rate.
Criteria for a loan for debt restructuring
Nevertheless, there should be sufficient creditworthiness and a regular income with a loan for a debt rescheduling. The banks themselves do not grant this loan to applicants who are already over-indebted. Even the self-employed, freelancers, pensioners and unemployed have no chance to get this loan. Because this loan is nothing more than a new loan that replaces the existing loans. However, when rescheduling a new loan, interest rates can be significantly lower, especially if you want to replace a slightly older and more expensive loan.
House banks tend to decline
The term and the interest rate for your loan for the debt rescheduling depend entirely on your credit rating and the loan amount you need. You get a loan for a debt rescheduling from 3 percent interest. However, if you need a higher amount up to 100,000.00 USD, you will also pay higher interest than for a lower loan amount. If you have several loans combined, you have the advantage that you only have to pay interest on one loan.
The different terms of the loans are then also eliminated, since the bank to be financed triggers the existing loans completely. Of course, your house bank will have little interest in combining the loans you have with them into one loan. It is worth asking other banks about the repayment of the existing loans. Most of the time, you get much more favorable terms from another bank than from your house bank. Direct banks perform best when rescheduling. Because they do not have branches, these banks often pass the savings on to customers.
Keep your eyes open when rescheduling
When rescheduling, you should make sure that you don’t get dubious people. You are promised low rates and interest from these dubious providers. However, there are often some clauses in the contracts with additional fees that make debt restructuring extremely expensive. It is best to contact the banks via the Internet and request your personal offer. Then you can choose the right offer for you at home.
You can largely determine the duration of a loan for debt restructuring yourself. Depending on the loan amount, you have a term of between 12 months and 120 months. This means that you can also significantly reduce the monthly installments to be paid. For processing, the banks need some information from you and the salary slips from the last 3 months. In addition, it should be possible to show the documents of the existing loans. After all, the bank to be funded transfers the funds directly to the other banks. A payment will not be made to you so that you are not tempted to alienate the money for other purposes.