You can reschedule several loans. The type of loan is irrelevant. For example, you can merge an overdraft facility with a consumer credit facility. However, it is only worthwhile for you if the savings from debt restructuring are greater than the costs of having to repay several loans.
To find out, take a close look at your installment loans.
- Remaining debt: Check your repayment schedule to determine how much of a loan is remaining at a given time. This gives you an overview of the total remaining debt for which you need to take out a new loan. If you don’t have your repayment plans on hand, you can also ask the banking institutions.
- Equity: Once you have determined the sum of the remaining debt, check whether you can settle part or all of your remaining debt with assets from inheritances or savings before repaying several loans. Even a partial payment reduces the remaining debt and helps you get a cheaper loan.
- Legacy loan costs: To generate the greatest possible savings when you reschedule several loans, also determine all the costs for the individual loans that would be incurred if the loans continued to run. For example, calculate the cost of the interest until you have paid off your remaining debt. Include account management fees that may apply. Summarizing loans only makes sense if this results in savings for you.
- Prepayment penalty: Now find out how much the prepayment penalty for early redemption is if you want to reschedule several loans. As a rule, 0.5 percent is due on installment loans that only run for a maximum of twelve months. For an installment loan with a remaining term of more than twelve months, the bank demands one percent as compensation. If you took out your loan before June 11, 2010, the rules agreed in the contract apply. Other conditions must be observed for prepayment penalties for construction financing
- Offers: To get really cheap terms when you pool your loans, get several offers and compare them. If you are unsure, ask a neutral financial service provider in-depth advice.
- Conclusion of a contract: Once you have found an attractive offer, you can reschedule several loans – quite simply. Many banks offer an exchange service. Simply fill out a transfer authorization. Your bank will then take care of the rest.
Debt multiple loans is worthwhile
There are many advantages to pooling loans. All you have to do now is keep an eye on a loan, pay a monthly installment and have a high degree of planning security. By specifying the term, you will finally find out when you have finished repaying your remaining debt. With cheap offers, you usually pay back less interest and can pay a higher repayment portion at the same rate. You only pay the monthly installment to a creditor. At a rate, the probability of being in arrears with the payments is lower. If you reschedule several loans, the new installment will be adjusted to your current financial situation, so that a default is less likely.