Apply for a loan – when a debt restructuring is worthwhile

Sometimes a washing machine or a car breaks down just when you don't need it financially at all. And often a mishap does not come alone. Of course, there are moments when an opportunity arises and money must be made immediately. If you don't have anyone to ask for a small loan in such a situation, you usually have to apply for a loan. There are enough offers. About reviewsbird.De find the most favorable offers as well as experience reports from other providers.

If you have already taken out another loan, you should probably also consider whether it might not be better to refinance it with a new lender. This usually works out without major problems for pure consumers. A debt restructuring can be worthwhile if the new loan offers more favorable conditions overall, but also if you need to restructure the total loan installment in order to remain financially flexible.

Apply for a loan - when a debt restructuring is worthwhile

How a debt restructuring takes place

First of all, you have to find a new lender and ask him for a loan in the amount of the remaining debt for the old loan and the newly needed money. At the lender where the new loan is requested, it is necessary to indicate that part of the loan is to be used for the rescheduling of the old loan.

To do this, the lender must be informed of the name of the bank and the processing or account number. The new lender will then contact the other bank and request a so-called balance confirmation. Once the credit check is completed, the remaining balance with the old lender is then cleared and the difference to the total credit amount is transferred to the customer's account, so that the money can be disposed of.

What else needs to be considered

However, debt restructuring is not possible or advisable for all types of loans. For example, in the case of very long-term loans, where the interest rate is fixed for a certain period of time, as is regularly the case for real estate loans, a so-called early repayment penalty is due, which can amount to a considerable sum depending on when the loan is to be repaid. In such a case, the borrower would be in a much worse position with a debt restructuring than without the debt restructuring.

The reason the bank requires a prepayment penalty is that it must refinance differently for the life of the loan, which can cause it to incur a loss. Termination without prepayment penalty is only possible after 10 years for long term loans.

Tip: in austria, loans can be tax deductible if certain conditions are met. The loan installments are then credited against the taxes payable with the annual tax return.

What to consider with a schufa entry

If someone has received a schufa entry because, for example, he paid a bill late at some point and therefore received a reminder notice, he will still be able to get a loan from many providers, provided that he can pay the installments from his salary and the old bill was paid long ago. The important thing is that there is enough money left over to live on after deducting the loan payment, rent and other current expenses. If, on the other hand, you have so-called hard features in your schufa, such as an application for an enforcement order or current private insolvency proceedings, you will not be able to obtain a loan.