Saving credit costs through car debt rescheduling
This is how you really debt
Since the consumer credit directive was introduced in June 2010, borrowers have had the right to terminate existing loans. In return, the bank is entitled to charge a prepayment penalty for lost interest income, but this is limited to one percent of the transfer amount. If the loan has a remaining term of less than one year, the prepayment penalty can only amount to 0.5 percent.
However, there are still banks that are so accommodating that they waive early repayment penalties. However, this regulation only applies to all loans that were concluded after June 11th, 2010.
Processing fees are not reimbursed
Consumers who have taken out a processing fee loan will notice at the latest when they want to redeem that the processing fee is an amount that will not be refunded. It is always a good idea to select a bank in advance that does not charge any processing fees and, in addition, does not require compensation for early redemption.
If a loan runs through the entire term, it only plays a subordinate role, but just over a third of all loan obligations are paid off prematurely. Most as part of a debt restructuring.
Debt the car loan if the rates are too high
Some consumers are not only interested in saving money afterwards by replacing an expensive loan with a cheap loan. For some it is important to reduce the monthly burden because the income situation has developed negatively and the current rate is too expensive. Even then, debt restructuring can bring the desired success. However, this presupposes that the borrower is still creditworthy despite the changed income situation. If a new loan is taken out that extends the term, the rates automatically decrease, which then leads to a lower monthly charge.
If the creditworthiness is only limited, it will be difficult to find a bank that is ready to take part in a debt restructuring. However, in the event of payment problems, there is always the possibility that the borrower will contact the lender and try to reschedule the current loan with the previous bank. Many banks are ready to find a common solution even in the event of difficulties, which is ultimately in the interests of both the borrower and the bank.