Debt rescheduling is not difficult.
The terms of loans are constantly changing. Ultimately, there isn’t a day when a bank doesn’t publish new terms for certain loans. This is beneficial for people looking for a new loan, but negative for others. For those who already have an existing loan and are shown how much less they would have to pay for a comparable loan. However, you still have the installment debt rescheduling.
The installment loan rescheduling: what does that mean exactly?
Debt rescheduling basically describes a simple process in which the borrower sees a new loan, takes it up and thus repays the old loan. As can be easily seen, he must then repay the new loan. If the debt rescheduling is done correctly, this means in plain text that the monthly installment for the borrower is reduced. So he keeps more money in the till. A debt rescheduling is therefore a financial advantage. Incidentally, this also manifests itself in the fact that debt restructuring and the fact that you keep more money in the cash register are accompanied by an improvement in creditworthiness.
What are the requirements for a debt rescheduling?
Basically, you only have to fulfill two conditions for a debt rescheduling: You have to be creditworthy enough to get the new loan and you have to be able to repay the older loan unscheduled. In reality, both conditions are not a particular obstacle. Installment loan agreements contain a right to special repayment, with which one can repay part or even the whole loan unscheduled. In addition, you are actually always creditworthy enough for a debt restructuring, since you are even reducing your debt burden.
These points must also be taken into account when rescheduling loans
However, two things have to be mentioned for a successful debt rescheduling: Firstly, many banks do not allow them in-house. This means that even if the money house later offers a cheaper loan than the one taken, it refuses to reschedule the debt because it would put them at a financial disadvantage.
On the other hand, you have to be careful to really include all fees and charges when rescheduling in the calculations in order to be on the safe side that rescheduling actually means a financial advantage. If you do not pay attention to the last point, the real benefits of debt restructuring turn into disadvantages almost immediately. In particular, the fees that the bank charges for the special repayment should therefore be kept in mind.