Anyone who took out loans a few years ago pays very high loan interest compared to today. The interest rate on loans has been falling steadily in recent years, and current borrowers are benefiting from this. But people who have higher-interest loans can also benefit from these low interest rates. Read more at sepcsq.org
The magic formula is to replace debt and expensive loans. Anyone who does this will be provided as a new customer and will receive the favorable interest rate for the debt rescheduling loan. This means that you can quickly save a few thousand dollars in interest.
This debt rescheduling loan must be made at a foreign bank. No bank will reschedule its own high-interest loans with cheaper loans. Banks earn very well from these “old loans” and are therefore not interested in rescheduling.
How is debt rescheduled?
How to deal with debt and expensive loans?
List all existing loans, and sort by interest rate. The loans with the highest interest are redeemed first. The interest savings are greatest with these loans.
Check whether there is a longer notice period or whether the cancellation is associated with additional costs. As a rule, early termination is possible without additional costs.
Determination of the debt rescheduling amount. Many banks grant loans up to a maximum of USD 50,000. This amount should be taken as a guide. If the total existing loan is less, all expensive loans can be repaid. If the sum of all loans is higher, only the most expensive loans are paid off.
Applying for a debt rescheduling loan from another bank. The credit rate and term are redefined here. In independent credit intermediaries several offers can be obtained. This has the advantage that the cheapest offer can be selected.
When applying for a loan, the replacement of the existing loans is specified as the purpose.
The bank will use the new loan amount to replace the existing loans.
Repaying debts and expensive loans is very easy. This way you can quickly save yourself high interest costs.
Other benefits of debt restructuring
Repaying debts and expensive loans not only saves high interest costs. There are often a large number of small or medium-sized loan amounts. Purchase loans in particular are often loans with small amounts. Those who finance many purchases in this way very quickly lose track of the total debt. The rates of these purchase credits are relatively high in relation to the loan amount. This is due to the fact that lenders want their money back here faster.
Lower rate burden
This can quickly lead to the situation that the total installment amount is very high in relation to the loan amount. Financial constraints can arise in the event of unforeseen financial burdens.
With a debt rescheduling loan, the monthly installment can be adjusted to the individual situation. This is advantageous for the entire financial planning.