A debt rescheduling in difficult cases often makes more sense than a conventional debt rescheduling, because the cost of a loan can be significantly reduced by a debt rescheduling. As a result, it is precisely the financially difficult cases that rescheduling is all the more helpful.
With debt rescheduling, an existing loan, often several loans, is always replaced and completely paid off with the loan amount of the new loan. This process is not uncommon in the economy, since the new loan can be taken out on better terms and the costs for the interest are considerably reduced.
Debt rescheduling in difficult cases
Debt rescheduling in difficult cases is always preceded by a credit comparison, because only with a credit comparison can the cheapest providers on the market be found. After all, the new loan should be taken out at ideal conditions, since it makes little sense to replace an economically unprofitable loan with an equally bad new loan.
As a result, debt restructuring in difficult cases is only possible or makes sense if the loan actually saves money. Then, however, there still remains the poor creditworthiness, which is almost always the case in difficult cases. You have to somehow convince the new bank that provides the new loan of your own creditworthiness. In the end, only facts and figures count here.
Difficult cases should not despair directly
It usually makes no sense to deal with the fact that a new loan is not possible at all and that rescheduling is unrealistic. Especially when the financial situation is not ideal and every dollar counts, debt restructuring should always be sought in order to demonstrably reduce the cost of a loan.
Even if an overdraft facility has been used on your own checking account, which happens automatically as soon as the account is overdrawn, it should be replaced as soon as possible. Overdraft facilities, regardless of which bank, always have an enormous interest burden and always cause high costs for the holder of the checking account (and thus also for borrowers).
These loans urgently need to be redeemed, regardless of whether an incoming payment can be arranged or whether a loan is requested. If possible, you can show a guarantor for the new loan and have it anchored in the loan agreement, which significantly increases the borrower’s creditworthiness.
In any case, loans with a very high interest rate burden must be repaid quickly in all circumstances, as otherwise a spiral of debt could be revealed, which would increasingly make the borrower a “difficult case” in finance.