If a borrower has taken out several loans and repays them regularly, it can make sense to consider rescheduling. It pays off especially on old loans, where lending rates were much higher than they are now.
What is debt restructuring anyway?
Debt restructuring means that several existing individual loans are replaced by a new, cheaper loan. This gives you a better overview of your own payments and saves you – depending on the interest rate – several hundred euros. Since debt restructuring is a new loan, both the duration and the amount can be renegotiated. It is important to be active yourself. Banks tend to offer little debt rescheduling, for a logical reason: banks earn on loan interest and what is cheaper for borrowers is the opposite for banks.
The advantages of debt restructuring are obvious: you not only gain an overview and better terms, but your credit rating is also improved. An open claim is always rated more positively for Schufa-Score than several open claims.
Disadvantages of debt restructuring
Of course, there are also disadvantages of debt restructuring, even if you can put it into perspective because of the predominant advantages. This adds the cost of a new loan as an additional financial burden. The repayment of an old loan or several old loans is not free of charge: depending on the remaining duration and the loan amount, the processing fees will then be charged. In order to minimize this, it is advisable to determine the costs for the early repayment before each borrowing. Furthermore, the termination of the residual debt insurance can cause the payments – unless the lender allows the existing residual debt insurance to be used to secure a new loan.
It is advisable to compare the costs you get in the case of debt restructuring with the savings to see which of them outweigh them.
In addition to getting offers from the house bank, it is also worth comparing various loan providers online for debt restructuring. These often offer more favorable terms for debt restructuring. You are not only limited to one provider, but you can also make several comparisons before deciding on a suitable debt restructuring.
Conclusion: Generally speaking, debt restructuring is worthwhile. The important thing is the right time and the costs that are saved in the event of debt restructuring. Of course, there are also various payments for old loans, which are not very important, so that rescheduling makes sense.