Debt rescheduling | Get rid of old loans now and save money
Simply switch from expensive to cheap. With a debt rescheduling loan, you can replace old loans, reduce costs and thus save money. A debt rescheduling loan is particularly worthwhile:
- for old loans with a long term
- if you have multiple current loans
- for loans with high interest rates (eg overdrafts, credit cards)
New conditions enable more favorable credit terms and advantages, such as:
- combining several loans into one debt rescheduling loan with one payment date
- more favorable conditions
- lower monthly rates
- better overview of your financial situation
- Creditworthiness improvement
- significant cost savings
Calculate your monthly rate
You can easily find out whether debt restructuring makes sense for you by checking all your current loans and determining the amount of the costs. This calculation should include all loans that are eligible for debt rescheduling. Check whether a prepayment penalty is due for your bank if you cancel. With Lite Lender you can then apply for a debt rescheduling loan for the determined remaining debt of your loans, easily via the Internet.
Lite Lender makes it easy for you
Applying for a debt rescheduling loan with Lite Lender works like a normal personal loan. Simply fill out the application form. After a preliminary loan decision, your loan request becomes visible on the online platform and can be financed by private investors. With Lite Lender, you can take out loans ranging from $ 1,000 to $ 10,000, depending on your creditworthiness, even from interest rates of 3%. With a good credit rating, your loan application will be fully funded by investors within a few minutes. Then you can simply choose the best offer and after successful verification the requested amount will be in your account the next day. If you select the IDnow online identification process, you can save yourself the trip to the post office and therefore do not even have to leave the house to identify yourself. Everything can be done conveniently from home via the Internet, even signing the contract. This means that there is nothing standing in the way of debt rescheduling. You can conveniently pay off the loan amount in monthly installments. You can determine the term of the loan yourself.
What is debt rescheduling?
If you have taken out a loan, it can be worthwhile to compare the conditions of your old loan with new loan offers every now and then. This applies in particular to long loan terms. The terms of the loans change over the years. What was completed years ago can be much cheaper today. In this case, rescheduling old loans can be worthwhile in order to benefit from lower monthly installments or a shorter term. So you can save cash.
In the case of a debt rescheduling, a loan or several current loans are repaid, i.e. fully paid off and replaced by a new loan that causes lower costs. In contrast to the old loan or loans, this new loan has lower monthly installments. The debt rescheduling is worthwhile if the debt rescheduling loan is lower than the sum of the remaining debt and interest that would be incurred for the old loan.
Several loans can also be rescheduled
A debt rescheduling loan is not only useful to replace old loans, but also if you have several outstanding loans. In the case of debt restructuring, these are combined into a single loan that replaces all others. This means that you only have a financial obligation to one bank. A single loan is made from several loan obligations with different terms and interest rates. This makes it easier for you to keep track of your finances and reduce costs. The costs are reduced in the form of saved interest. You can process the debt rescheduling quickly and easily online. Lite Lender offers you optimal conditions for taking out debt rescheduling loans.
What you should look out for when repaying loans
- Calculate the remaining debt of your installment loans
- Obtain current offers for the outstanding loan amount
- Compare conditions
- Pay attention to the effective interest rate
- Consider prepayment penalty upon redemption
The first thing you should do is find out whether debt restructuring is worthwhile for you. To do this, first calculate the remaining debt of your current loan or loan. For the sum of the remaining debt, you then look for a new loan with better terms to replace your old loan. Benefit from new internet loan models and compare the current options offered. Do not only compare the amount of the monthly installments, but pay particular attention to the indication of the effective annual interest (effective interest).
You can recognize the cheapest offer by the lowest effective interest rate. This interest rate takes all credit costs into account. The effective interest rate includes not only the borrowing rate (formerly nominal interest rate) that indicates the amount of the interest on the loan, but also all costs and fees incurred when taking out the loan. Therefore, check the new loan agreement carefully and do not let the supposedly much lower interest (debit interest) entice you to sign it.
Check the amount of the prepayment and take this cost factor into account. If you have taken out a loan with a bank, as a borrower you usually have to pay a prepayment penalty if you want or have to get out of the loan contract early. You must take this factor into account when rescheduling your loan and include it in the calculation of the remaining debt. The prepayment penalty is a kind of “penalty payment” that is calculated because the bank loses future interest income if the loan is terminated prematurely. There are different prepayment regulations depending on the type of loan.
If the remaining term of an installment loan is more than one year, the bank is entitled to a maximum of one percent of the remaining debt. If the remaining term is shorter, the entitlement is a maximum of 0.5 percent. Loans that were taken out before June 11th, 2010 are an exception – here the contractual agreements apply a further upper limit: the prepayment penalty to be paid must not exceed the amount of the debit interest that would have accrued up to the scheduled repayment. In most cases, however, rescheduling is worthwhile despite any prepayment penalty. Lite Lender has already relieved many customers of debt rescheduling loans. Apply for your new loan today so that you have more money available for other things every month.
Improve creditworthiness through debt restructuring
Replacing a lot of current loans with a single new loan will also improve your credit score. Credit bureaus rate it as positive if you only have one loan instead of many different ones. A better credit score is again helpful if you want or need to take out further loans in the future.