How to get a cheap loan?

21 Jan

Would you like to reschedule a loan cheaply, but are not yet sure how the debt rescheduling could work and who will grant a loan?

We accompany your project with information on cheap debt restructuring, even in difficult cases. Find out what is important for debt restructuring, which loan offers are particularly cheap and how you can overcome problems.

Debt Loan Favorably – Not every loan is recommended for debt rescheduling

Debt Loan Favorably - Not every loan is recommended for debt rescheduling

The idea of ​​debt rescheduling cheaply, saving interest and reorganizing finances is generally a good idea. Insurance contracts and current credit obligations should always be reconsidered. Every law provides for the right to prematurely redeem a consumer loan. But it is not said whether the repayment will be free of charge, everything will be calculated back.

In the credit terms, credit institutions determine how to proceed in the event of early loan repayment, for example through debt restructuring. It would be possible to claim lost interest. In addition, the lender does not have to recalculate all loan costs. Checking whether rescheduling actually leads to cost savings is one of the crucial preparations for any successful refinancing of existing liabilities.

A loss-making business must definitely be assumed if insured loans would be refinanced. Around 10 percent of the loan amount was paid for insurance premiums for the RSV. “Unused” money in the form of early cancellation of the insurance risk will not be reimbursed. The insurance cannot be transferred to the debt rescheduling loan, even if it came from the same provider.

The case with the overdraft facility is clear. Debt cheap debt, the debt rescheduling of the overdraft is one of the aspirants with the greatest savings potential. Special preparations for debt rescheduling are unnecessary. The current account balance gives the transfer fee relatively accurately. In the case of a debt rescheduling loan, it makes sense to calculate in smooth sums, a few USD “stragglers’ interest” are not a broken leg.

Interest rate trap overdraft in numbers – overdrafting takes precedence

Interest rate trap overdraft in numbers - overdrafting takes precedence

Statisticians divide current account owners in Germany into two large groups. Some never use overdraft facility or only exceptionally. The others use it regularly and spend an average of 3,000 USD at their house bank “in chalk”. Unfortunately there is no uniform interest rate in Germany. Overdraft rates range between 4.25 percent pa of the Skatbank and up to 17.5 percent, as the Stiftung Warentest determined.

Our (non-representative) research shows a current average discount rate of around 14 percent. 3,000 USD financed with 14 percent effective interest cost 420 USD interest per year. Debt this loan cheaply, a small loan with a term of 12 – 36 months from the loan comparison is exactly suitable. The overdraft facility could be repaid in small installments over a period of 36 months.

The loan comparison shows 1.99 percent non-creditworthy annual percentage rate for the required debt rescheduling loan. Monthly payment by installments of 85.89 USD is affordable for practically every household budget. Converted to one year, the loan costs only USD 30.69 interest. The household budget can look forward to almost USD 390 interest relief each year. The additional money would be clearly noticeable even with a large house budget.

Credit Summary – Benefits of Successful Debt Rescheduling

Credit Summary - Benefits of Successful Debt Rescheduling

Summarizing existing liabilities into a loan and refinancing the entire transfer fee can be advantageous. Instead of multiple installments, only one credit installment needs to be serviced. The debt rescheduling loan starts at zero. The loan amount to be financed is less than the original amount of the old liabilities.

Together with the new term, the rate of the debt rescheduling loan is expected to be significantly lower than the sum of the current installment payments. The household budget is receiving new liquidity because only a reduced rate burden has to be shouldered. For this reason, many people want to reschedule existing loans cheaply if the ongoing installment payments become a burden.

Difficulties in debt rescheduling – deterioration in creditworthiness

Difficulties in debt rescheduling - deterioration in creditworthiness

Unfortunately, with this constellation it is no longer absolutely necessary to assume the best credit rating for lending. In contrast to the example of overdraft rescheduling, personal creditworthiness would have to support a larger loan amount. This can be difficult because higher lending conditions often have stricter conditions than those for gradually granting small loans.

Regular credit providers often only take on a slightly higher credit risk if an additional risk interest premium makes the financing more expensive. Another reason for the lack of low-interest offers could be the length of the term. Interest receivables skyrocket above 84 months. On top of that, compound debt makes the debt with an extremely long term more expensive.

Optimally adapted to the creditworthiness – serious, well-thought-out debt, cheap debt rescheduling

Optimally adapted to the creditworthiness - serious, well-thought-out debt, cheap debt rescheduling

If the creditworthiness is small or medium-sized, the penalty interest can probably be avoided by offering additional collateral. The desire for low interest rates could be met if a co-applicant or high-quality property security supports the loan. Homeowners, for example, should hope for particularly low interest rates for the debt rescheduling loan with a debt rescheduling loan without a land register.

If the “low tide in the household budget” is caused by a reduction in the disposable income, “cheap debt rescheduling” becomes really tricky. A debt rescheduling loan from a risk-taking bank or from a private bank would be conceivable. In this case, we recommend debt rescheduling credit without missing a credit opportunity via good credit company. The portal provides serious credit from private to private, but also to banks.

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