The persistent low interest rates have caused a huge increase on the credit market in Germany. More and more Germans are taking out a cheap installment loan in order to fulfill their wishes. This is not surprising, since installment loans are currently sometimes advertised with interest of less than two percent – provided that they have the appropriate credit rating and positive credit record . Even borrowers who do not currently need a loan should take advantage of the hour and think about repaying their existing loans. This does not only apply to installment loans – considerable amounts can also be saved by rescheduling expensive overdrafts or building finance.
In the event of debt restructuring
An existing loan that was taken out several years ago at a higher interest rate will be replaced by a new, significantly cheaper loan. If several old loans are combined to form a new debt rescheduling loan, the borrower also benefits from better clarity and control over their current liabilities.
What rescheduling installment loans does
A rescheduling of installment loans can have various effects: The debt rescheduling loan can bring about a significant reduction in the monthly installment due to lower interest charges and the combination of several installments. If the borrower is not interested in a lower monthly charge, but primarily in the reduction of the total costs over the entire term, the monthly rate can be left at the same level, which goes hand in hand with the increase in the repayment portion at a lower interest rate. The loan is paid off much faster and the borrower saves cash.
Why it makes sense to replace the overdraft facility
The average interest rate on overdraft facility is currently just under 10 percent. It is tricky that some banks advertise with low overdraft rates of around 6%, but these are only valid for expensive current account models. With account management fees of $ 15 per month, the total costs per year are significantly higher than the advertising suggests. In addition, bank customers should make sure that they do not overdraw the agreed discount when using their devices. Because the interest for tolerated overdraft is still significantly higher than the overdraft interest within the agreed framework. So if you don’t overdraw your account at all, but instead take out a cheap installment loan, you drive better in the medium to long term.
The conditions for debt restructuring are currently ideal
The key interest rates of the Agree Bank are at an all-time low, so installment loans are cheaper than ever. So if you are planning a debt rescheduling, you should use the current low interest rate level and start your debt rescheduling promptly. If the points described above are observed, a considerable amount of money can be saved by rescheduling.