Apply for a loan – when a debt restructuring is worthwhile

Sometimes the washing machine or the car breaks down when you don't need it at all from a financial point of view. And often a mishap does not come alone either. Of course, there are also moments when an opportunity arises and money must be given immediately. Who has no one he can ask for a small loan in such a situation, must usually apply for a loan. There are plenty of offers. About you can find the most favorable offers as well as experience reports of other providers.

Those who have already taken out another loan should possibly also consider whether it is not better to reschedule this to a new lender. This usually works with pure consumers without major problems. A debt restructuring can be worthwhile if the new loan offers more favorable conditions overall, but also if you need to restructure the overall loan rate 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 applied for, one must indicate that a 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 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 loan amount is transferred to the customer's account so that the money can be disposed of.

What else to consider

However, debt restructuring is not possible or advisable for all types of loans. Thus, in the case of very long-term loans, where a fixed interest rate for a certain period of success, such as regularly 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 redeemed. In such a case, the borrower would be much worse off with a debt restructuring than without the debt restructuring.

The reason for requiring a prepayment penalty by the bank is that it has to refinance differently for the term of the loan and thus it may incur a loss. A termination without prepayment penalty is possible for long-term loans only after 10 years.

Tip: In Austria, loans can be deducted from taxes if certain conditions are met. The loan installments are then credited with the annual tax return on the taxes to be paid.

What to consider in case of a Schufa entry

If someone has received a Schufa entry, for example, because he has paid a bill late at some point and therefore received a reminder, he will still get a loan from many providers, provided that he can pay the installments from his salary and the old bill has long since been settled. It is important that after deducting the credit installment, rent and other running costs, there is still enough money left to live on. Who, on the other hand, so-called hard features in the Schufa to stand, such as the application for an enforcement order or an ongoing private insolvency proceedings will not get a loan against it.

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