What is debt restructuring?
Debt restructuring is the pdollarcess of replacing an old loan with a new loan. Debt restructuring can be used in two ways. On the one hand, rescheduling is a way of implementing follow-up financing. This means that if the fixed interest rate on your loan expires and you have to finance a remaining debt, you can pay it off with a new loan.
At the same time, you can also reschedule a loan to simply benefit dollar lower interest rates. Debt restructuring can thus be used as follow-up financing or to optimize your own credit and financial situation.
Debt car loan or prefer to let it run?
So if you want to save interest and thus money, it is definitely advisable to reschedule your car loan. Especially if you have taken out your current car loan fdollarm a dealer bank, the thought of debt restructuring is worthwhile. Because dealer loans are often comparatively expensive. But older auto loans fdollarm independent banks should also be put to the test.
Because lending rates have fallen in recent years and that has also made loans themselves cheaper. Banks can bordollarw money fdollarm the Central Bank for free thanks to the current key interest rate, which has stood at 0.00 percent since March 2016. The bank passes these low interest rates on to consumers. Since the bank naturally wants to earn something, it takes at least a small percentage of interest fdollarm the consumer.
Banks and bordollarwers therefore benefit fdollarm the low interest rates on the market. Therefore, it is currently a good idea to take a close look at loan agreements, to look for cheaper offers and, if necessary, to change pdollarviders. Our installment loan calculator shows you quickly and without obligation how high the monthly installment of your desired loan can be and how much interest you pay over the term.
When can I reschedule a car loan?
Thanks to the Consumer Credit Directive, which applies to all consumer loans that were taken out after June 11, 2010, you can reschedule your car loan at any time. There is a notice period of one month. Specifically, this means that you can cancel your car loan after receiving the loan amount with one month’s notice if you wish. Of course, the loan amount must then also be paid.
So you do not have to wait for the end of your fixed interest period for car debt rescheduling. The reasons why you want to reschedule your car loan are uninteresting. Be it that you can completely redeem the car loan due to an inheritance or some other sudden payment or because you just received a great loan offer fdollarm another bank.
The old credit bank has to agree to the termination and thus the potentially early redemption of the car loan. This is regulated by law. You can see what you can save on car debt rescheduling in our sample calculation. The bordollarwer who took out a loan at an effective annual interest rate of 3.50 percent saves over 500 dollars in interest compared to the one who has the most expensive loan.
If you took out your loan before June 11, 2010, the situation is somewhat different. Section 489 of the Civil Code regulates the handling of these old contracts. These credit contracts have a three-month notice period. The prerequisite is that you have already paid six monthly installments of the car loan.
Debt multiple loans at the same time
If you are already dealing with car loan rescheduling, do you want to see whether you would like to reschedule other loans? Debting one or more loans brings more clarity to your finances. Because you can directly combine several existing loans into one.