The topic of finance runs like a thread through our lives. We work to live well. And we live to work somehow. Both things belong together and ensure that everyone can strive for the standard of living that he imagines.
However, many live beyond their means. They spend more money than they actually have. If this only happens in a moment, it may be all right and the cleansing of the blame is done quickly. However, those who live beyond their means over a longer period of time, at some point no longer has the opportunity to control the accumulated liabilities. They then present themselves as debts, which can sometimes hardly get under control.
Failure to respond quickly enough in such a case will result in negative debt in the Schufa. The expert then speaks of over-indebtedness, which affects more than 6.6 million people alone in Germany. You have negative entries in the Schufa and therefore are not considered creditworthy.
However, anyone who reacts in a timely manner can skilfully escape being over-indebted. Namely with the help of a loan for a debt restructuring. This can always be used when debts have accumulated with several creditors, which are to be summarized or if an already existing large loan should be continued on better terms.
At this point we would like to show you what a loan for a debt restructuring can look like, how it works and what you should take into account when taking it.
When is a Debt consolidation worthwhile?
Debt consolidation is always worthwhile if you can use this to improve your financial situation. For example, if you have multiple creditors to serve at the same time, it always means you have a lot of money to handle. However, if you have only one creditor because you have pooled your debts, the monthly burden is significantly lower and you have more financial leeway.
Similarly, if you want to repost an existing loan. This is usually done on loans with a very long maturity. The Debt consolidation gives you a cheaper rate of interest, which makes the loan cheaper because the incidental costs are reduced. Again, you will notice the positive effect in your wallet, as there will be more free money available per month.
To repost a loan
If you are looking for a loan for a debt consolidation to replace an already existing loan, then you must search and borrow in a specific order. This is the only way to avoid that you end up with no credit, but with a huge mountain debt.
Check with the current lender for the outstanding liabilities. At the same time, check whether your old loan allows a free Debt consolidation or a free transfer. Only if this is the case, you can make the Debt consolidation on good terms and do not have to expect additional costs.
Can not be rescheduled free of charge, then let the credit-leading bank tell you how expensive the transfer fee will be. The total amount thus determined can then be used to search for a suitable loan for the Debt consolidation.
Compare several credit offers with each other. If you have found a good offer, contact the bank and secure the offer. Keep in mind that you need to submit documentation about your income and expenses. In addition, the Schufa is queried.
With the new loan offer, make sure that the repayment modalities and the effective interest rate are better than the current offer. Because only then is the Debt consolidation worthwhile. Sign the new loan agreement and then cancel the old contract. This order is very important so that it does not come to a hole in the financing.
The new bank will gladly help you with the replacement of the old loan. She transfers the money and clears the loan so you do not have to worry about anything. You just have to give permission.
Tip: Do not forget the small sums that you have with traders open or that have been created by covering the current account. For a debt restructuring loan, borrow one euro too much rather than too little.
Once you have determined the amount of debt, it is important to find a suitable loan offer. As a rule, you will need to focus on a installment loan that you receive from any independent bank or savings bank. We recommend that you use a loan calculator for your selection, which you can find here. He helps you to compare different offers and shows you which offers are particularly worthwhile.
If a good offer is found, then you should take up the loan for the Debt consolidation as soon as possible. Because the offers are always in real time and therefore can change relatively quickly. Make sure that you have all the documents for the application together. Above all, take this step on time. Before your debts show up. Because with a negative entry, you will find it very difficult to find good and worthwhile loan offers for a loan for a debt Debt consolidation.
Be careful not to overstate the monthly rate. It has to be easy to handle so that you do not get into the situation that you can not pay the loan. If you have problems with the credit rating, then look for a solvent guarantor. It will make it easier to borrow and ensure that you get cheap loan offers.