A Debt Relief Credit can be borrowed to repay a loan through another loan or to combine multiple loans into a single loan and then pay only one installment to a single body. In any case, debt restructuring loans should always serve to improve the financial situation and not create new problems.
In order to get a loan for debt restructuring, similar to another loan, certain basic requirements must be met. It is particularly important that the credit bureau is in order and that a regular income in sufficient amount is available. However, regardless of this, any borrower considering borrowing for debt restructuring should ask himself if he is truly capable of paying regular loan installments over a longer period of time. If this is not the case, he should rather refrain from it and seek other alternatives to debt restructuring. This could mean, for example, that he visits a state-approved debt advice center in his area.
Debt rescheduling is always used when an old, existing loan is replaced by a new loan. This does not necessarily have to happen at the same bank as before. An important criterion for deciding on a loan for debt restructuring should always be whether the new loan can really save money.
This would be particularly the case if the interest rate for the new loan is well below the interest rate on the old loan. To find such a loan, especially the numerous comparison portals on the Internet should be consulted. There, the loans of different providers can be compared in a few seconds.
Summary of several loans
In addition to the repayment of a loan, under certain conditions, it is also possible to replace several loans at the same time and instead pay only one loan to a body. This would then have the great advantage that the financial situation is much clearer, since only one single loan installment has to be paid per month.
In principle, however, not only loans, but also other debts can be replaced by a new loan. There is a great chance that the debtor can settle his debts immediately and then no longer has trouble with his creditors. Instead, he then pays the repayment installments for the loan for debt restructuring.