Debt rescheduling without private credit


 A rescheduling is possible without private credit, if the customer chooses a foreign bank. In a single soft negative entry is the avoidance of a financial institution outside Germany, in contrast to a common assumption is not mandatory. Few domestic banks explicitly offer a rescheduling even with bad private credit, as they point out in their advertising as well as on the respective website.

The reason for a rescheduling without private credit is in many cases an interest savings compared to the previous loan. This goal can be achieved with very expensive loans. Other borrowers do not want to repatriate their existing loan because of the potential interest savings, but are dependent on lower monthly installments. You are looking for a new loan if your previous contract partner has rejected a desired term extension. These borrowers often rely on rescheduling without the involvement of private credit due to existing negative characteristics. At the same time, the new loan is indispensable for them, while bank customers hoping for savings alone can continue their current contract if they can not find a cheap new loan.

In the case of a debt-free rescheduling for cost savings, borrowers take into account not only the interest rates of the previous loan and the new loan but also possibly payable prepayment interest in the savings calculation.

The process of a debt-free debt restructuring

Since the rescheduling takes place without a private credit request, the existing liabilities of the new lender are known only from the applicant’s own information. These must be complete and, if requested, also contain the data that may not be included in the debt rescheduling. The direct transfer of the corresponding amounts to the previous credit accounts is also usual in the case of debt-free loan repayment.

Of course, even with a rescheduling without private credit the existing credit volume can be increased. In addition, it makes sense to also offset the drawn on discretionary credit, as most banks charge for this extremely high interest rates.

Some foreign banks are promoting a debt-free rescheduling. In these, the borrower can apply for the debt restructuring loan directly. However, most loan repayments without the involvement of private credit are concluded via a credit intermediary. This finds a favorable offer for each client. That the agent works seriously, can be seen in the non-calculation of cost.

Which demands should aprivate credit debt loan fulfill?

In addition to a favorable interest rate, the rescheduling without private credit participation should be associated with a partially flexible repayment option. If the loan agreement allows for special unscheduled repayments, the agreement provides for small mandatory installments and the transfer of additional repayments in good financial condition.

The right to premature repayment without calculation of a prepayment penalty also offers the possibility to carry out a new rescheduling with continued falling interest rates. Although this is also conceivable for payable prepayment interest, but then offers a significantly reduced potential savings.

If debt-free debt restructuring is associated with the right to an occasional installment break, borrowers will use it for temporary financial difficulties and will not be in default. Also helpful is a clause in the rescheduling loan agreement, which explicitly provides for the possibility of a rate change at the request of the customer. Less reliable are reports from current lending clients on the complacent behavior of the bank against such requests, as it can stop the voluntary accommodation at any time.

Depending on the country in which the credit-paying bank is located, settlement takes place in euros or in a foreign currency. In addition to the financial institutions from the euro area, the Swiss and Liechtenstein banks are also using the European single currency for non-schilling lending to German customers. Foreign currency loans for rescheduling without private credit are associated with the risk of unfavorable price development, which increase the repayment amount. A change in the exchange rate that is positive for the debtor is also conceivable.

The personal loan for the debt-free debt restructuring

The online platforms for private credit intermediation define debt rescheduling without private credit in a different way than traditional banks. They usually do not understand the non-solicitation of a credit rating by the platform operator or the legally cooperating licensed full bank, but the non-display of the private credit data to the potential private lenders. This is useful only if you have several or severe negative features, because most private lenders reward complete information by fast credit, even if they are unfavorable for the usual credit rating.

In the practice of private credit exchanges, it appears that the request for a private loan for rescheduling without private credit is drawn the fastest, if the loan seeker can not carry the previous monthly charges and therefore relies on a new loan with a longer term and lower monthly installments , If, on the other hand, the requester only indicates the desire to save interest as a reason, the private lenders often hesitate to fulfill the loan request. This behavior is explained by the fact that many registered private lenders pay close attention to social criteria and classify the rescheduling, which only serves to save interest, as not mandatory.