If you are looking for a loan for debt rescheduling, you should first find out exactly about the conditions of the loan and the effective annual interest rate. Only if the latter is significantly lower than the APR of the old loan does it make sense to seriously consider debt restructuring.
Perform credit comparison
There are various reasons for debt restructuring. It is not so rare that the fact that an old loan has become too expensive plays a role, but on the other hand there could also be a desire to combine different installment or overdraft loans into a single installment loan. This not only provides a better overview, but could also make personal financial planning much easier.
Regardless of what is ultimately the reason for a debt rescheduling, it would be a good idea to do a thorough comparison before choosing a specific bank or lender. Such a comparison can be done conveniently at home on the Internet and only takes a few minutes. Ideally, a loan calculator should be used, which can deliver an exact and up-to-date result at any time.
Loan Redemption – Conditions and Costs
Before taking out a loan for debt rescheduling, the borrower should carefully consider whether the interest savings on a new loan are really sufficient to save money permanently or whether the prepayment penalty and the processing fee are so high that rescheduling or loan repayment is not worthwhile. If you attach great importance to the fact that you can quickly replace an existing loan, you should make sure when signing the loan contract that the notice period is relatively short and the early repayment penalty is as low as possible. Many banks do not even charge a prepayment penalty or a processing fee for the loan repayment.
Apply for loan for debt rescheduling
Once the right loan has been found, it can be applied for either online or in a bank branch. In any case, the bank will check very carefully whether the customer really fulfills all the requirements for lending. The prerequisites for a loan for debt restructuring do not differ significantly from the prerequisites that also apply to any other installment, consumer or car loan. So the customer has to prove a regular income and a positive Credit Bureau information. If, after thorough examination of all documents, the bank comes to the conclusion that the customer can receive the loan for debt rescheduling, it will transfer it to the customer’s account within a few days. Cash is only rarely possible at the bank or post office counter.