Debt consolidation information

Payday Loan Consolidation: loan suitable for debt repayment

There are two reasons to look for a loan to repost despite private credit. One is the desire to pay lower interest rates in the future. The likelihood of being able to compensate for an installment loan with a good credit rating through a cheaper loan despite bad private credit is not overly high. On the other hand, it is not a problem for the borrower to continue the existing loan if he does not find a cheaper alternative. In the case of installment loans, an interim deterioration of the creditworthiness according to the private credit information, even if it becomes known to the bank, shall not be considered a reason for termination by the bank, provided that the bank customer pays the installments for the specific loan as agreed.

The second reason to look for a loan to repost despite private credit is the excessive monthly installments for the previous loan. In this case, credit customers first ask their bank whether a term extension is possible. If the previous contracting party refuses such, they replace the previous loan with a new loan. A possible savings in interest rates is a desirable side-effect in the case of a loan repayment to reduce the monthly installment, but not the actual goal.

Is the classic payday loan suitable for debt repayment?

A private credit Swiss credit can be used to repost despite private credit. Lending takes place without earmarking and not as a special rescheduling loan, so the bank transfers the money to the customer’s checking account. However, only the amounts of 3500 and 5000 euros are possible as a loan amount, which is why the ordinary payday loan is rarely suitable for rescheduling bad private credit.

The requirement for applying for a loan without private credit in Switzerland is a minimum income that is higher than the usual requirement for German banks. At the same time, the Swiss federal banks do not charge tax-free allowances, child benefits and supplementary income when applying for a credit application.

Bank customers apply for a higher loan for repayment despite and without private credit via a reputable broker. He asks for the desired debt-free loan from both Swiss and other foreign banks. Credit processing is usually done in the same way as with domestic debt rescheduling loans, with the bank transferring the individual amounts directly to existing credit accounts.

Domestic loans for a debt restructuring despite negative private credit

Domestic loans for a debt restructuring despite negative private credit

Many domestic banks will reject any loan application without further scrutiny as soon as the applicant’s credit report contains a negative feature. This often even applies if this is marked as completed and thus rated by the credit protection itself as a neutral credit rating criterion. On the other hand, some financial institutions expressly point out on their respective homepage that lending is possible in the event of a soft negative entry after a case-by-case examination. Bank customers who apply for a loan for repayment despite private credit, preferably turn to these financial institutions.

Another way to borrow for a rescheduling even with bad private credit is the joint application with another person. Restrictions on lending to two people exist in a few banks, which require an identical address of both credit customers. In all other cases, in addition to the partner, a parent, sibling or even good friends are eligible as co-borrowers. A loan guarantee is also possible for a debt repayment loan, despite private credit, but because of the high demands on its effectiveness, most banks are less likely to accept it as a jointly separate loan application.

German financial institutions demand in a rescheduling predominantly that old existing liabilities flow into this. Exempt from this obligation are in many cases lending on special terms such as vehicle financing or interest-free installment payments in the trade. Of course, there is the possibility of combining the loan for debt, despite private credit, with an increase in total lending volume.

The new loan taken up by private credit in order to reschedule existing liabilities should be linked to the lowest possible interest rates. Other key selection criteria are a sufficiently long maturity and flexible repayment options.

Are personal loans suitable for rescheduling?

As an alternative to a bank loan, a required loan for debt can be borrowed via a loan exchange for organized lending between consumers, despite private credit. A soft negative credit criterion is expressly not valid on the relevant platforms as a reason for refusing admission as a credit-seeking member.

Loan disbursement via a personal loan exchange takes place as soon as the desired amount has been fully subscribed by one or more lenders. In the case of higher rescheduling amounts, the subscription is customary by several persons who each pay partial amounts. Since many private lenders are guided by social criteria and the obvious need for funding, they prefer to file requests for a debt repayment loan, despite private credit, if the hiring party relies on lower monthly payments and does not want to save only interest costs. In his loan request, he clearly points out the current financial situation and the reason for the planned debt restructuring.

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