Debt consolidation: what do private individuals need to pay attention to?
The debt restructuring changes existing obligations without reducing the amount of debt. This is done to protect private individuals from insolvency or over-indebtedness. To achieve this, interest rates are usually reduced. However, if you want to conclude a debt repayment loan, you should be on the lookout for a lot, because there are often hidden cost traps.
A rescheduling should protect against insolvency.
Watch out for debt rescheduling at cost
Like any traditional loan, a debt repayment loan costs money. These include both the processing fees and the conclusion of expensive insurance such as a residual debt insurance . In particular, borrowers who no longer receive credit from the house banks due to a negative entry in the Schufa, tend to turn to a credit intermediary on the Internet.
Consumers generally pay double or triple this, because in addition to the horrendous consultation and processing fees, the credit intermediaries also demand a higher interest rate than would have been the case with the older credit agreement. In addition, agency fees are due.
Terms and read the fine print
In a debt repayment loan, the current loans are combined and converted into a loan. For this purpose, all current loans are redeemed prematurely. This is exactly where most mistakes are made, because not every loan can be prematurely replaced by a one-off payment without incurring any additional costs. This point is already enshrined in the terms and conditions at the time of conclusion in the respective credit agreement. Also, the fine print in the old loan agreement must carefully examine consumers before the conclusion of a debt rescheduling, because in addition to a transfer fee interest rates play an enormous role. How it behaves with a rescheduling without Schufa, can be found here at www.zukunft-ohne-schufa.de .
Interest rates should be well below the interest rate of the existing loan
When looking for a suitable debt rescheduling loan, consumers should be aware of current interest rates. A rescheduling loan only makes sense if its interest rate is well below the interest rate of the existing loan. In addition, this saving must also cover the costs incurred for the rescheduling, such as the transfer and handling fees.