Borrowers carry out debt restructuring for different reasons:
With debt rescheduling, you, as a borrower, can improve your liquidity situation if the newly taken out loan has a lower interest rate than the previous loan and the rate is therefore reduced. A deficit in the budget due to excessive credit rates can possibly be eliminated by rescheduling.
Faster repayment of debt
You can also use the savings achieved through a low-interest loan to reduce debt faster and thus shorten the loan term. If credit rates remain the same, the interest portion of a rate is reduced with a lower interest rate, while the repayment portion increases.
Improve the overview of existing debts
- Debt restructuring, in which several loans are combined into one larger loan, gives you a better overview of the total debt.
- A single credit installment simplifies the monthly income-expense account.
- The end of the term of a summarized loan gives you certainty when you will be debt-free with even repayment of the debt.
Possibility to improve credit conditions
With debt rescheduling, you have the opportunity to achieve an improvement in other loan terms in addition to the loan interest rate – e.g. B. by agreeing additional special repayment rights or by changing the fixed interest period. If you manage to get the new loan without previously agreed collateral, these assets will be freely available to you in the future.
Debt rescheduling if the previous lender is no longer willing to borrow
A debt rescheduling may also be necessary if a credit institution is unwilling to continue a loan and may have already canceled the loan. In this case, the debt rescheduling serves to repay the loan in good time in order to avoid coercive measures by the previously lending bank.