The bank often rejects the debt restructuring with a negative entry in the Schufa.
The poor credit rating due to the negative Schufa entry often causes rejection of the desired debt restructuring.
Credit check: Debt restructuring is possible despite a negative credit bureau, but other factors such as regular income or existing collateral must be used to assess the creditworthiness. Lenders must ensure that the debtor is able to repay the rescheduled loan.
Look for specialized lenders: There are credit institutions and private lenders that specialize in borrowers with negative credit bureau. They often have experience with these cases and can offer more individual solutions if necessary.
Transparency and openness: When rescheduling despite a Schufa entry, it is particularly important to be open and honest about your own financial situation. Withholding important aspects can damage the lender's trust and reduce the chances of debt restructuring.
Advice and support: Since debt restructuring is often complex despite Schufa, it is often helpful to seek professional support. A debt counselor or an experienced financial advisor can provide valuable help in finding suitable lenders and creating a viable repayment plan.
Risks and costs: It is important to keep in mind that debt restructuring despite Schufa is often associated with higher interest rates and costs. You should therefore check carefully whether debt restructuring in this situation actually leads to financial relief and whether the additional costs are bearable.
In the case of debt restructuring, existing loans are replaced. It is thus a process in which one or more existing loans are replaced by a new loan. The new loan will be used to pay off the old debt. The debtor then only has to repay the monthly installments of the new loan.
This can be difficult, as many credit institutions hesitate to grant a loan if there are negative credit bureau entries. However, there are specialized lenders and certain programs that can help such individuals restructure their debt.
A common reason for the planned debt restructuring is that the new loan offers more favorable conditions, for example lower interest rates or a longer term that reduces the monthly burden. A debt restructuring can also serve to simplify finances by combining several loans into one.
Always note that there are additional fees when you change your loan, which of course must be included in the overall assessment.
A negative Schufa can affect the chances of a debt restructuring, since many traditional banks and lenders are reluctant to grant a loan with negative Schufa entries. The reason for this is that a negative Schufa is often taken as a sign of higher credit risk.
However, there are lenders who specialize in loans for people with negative credit bureau. These lenders consider other aspects of your financial situation, such as your income and employment status, and not just your Schufa rating. Therefore, it may be possible to get a debt restructuring loan despite a negative credit bureau.
It's important to note, however, that loans for people with negative credit ratings can often have higher interest rates and stricter terms. In addition, these loans may also include other fees and costs. Therefore, it is important to carefully examine all aspects of the loan and ensure that the monthly payments are affordable before taking out such a loan.
If you are considering a debt restructuring and have a negative credit record, it may be helpful to seek the advice of a financial advisor or a debt counselor. They can help you understand your options and find the best solution for your particular situation.
When refinancing, fees can primarily be incurred in the form of a prepayment penalty if the existing loan is redeemed prematurely. In Germany, it is generally possible to terminate and repay any loan before the agreed end of the contract, although the lenders can claim compensation in this situation.
If the loan runs for more than 12 months, a fee of up to 1% of the outstanding loan amount can be charged, with a remaining term of less than one year the maximum fee is 0.5%. However, interest-linked real estate financing with a term of up to 10 years is exempt from the regulation.
Some banks allow borrowers to prepay their loan in full before the end of the contract, but only a few banks do. Therefore, before applying for a rescheduling loan, you should always check the contractual terms of the current loan with regard to any prepayment penalty that may be due.
Paragraph §502 BGB regulates prepayment penalties for banks. This regulation also states that the amount of compensation may not exceed the interest that the bank loses due to the early redemption of the loan.
Due to high inflation, the cost of everyday living has risen noticeably in recent months. People who are currently still paying off debts could noticeably save on their wallets by rescheduling their debts. Because many borrowers often pay higher interest rates for their loans and installment financing than is actually necessary.
However, debt restructuring only makes sense if the savings from the lower interest rates on the new loan outweigh the costs of the so-called prepayment penalty. You have to pay this to the bank in order to be able to get out of the old loan agreement. With the rescheduling calculator from Verivox, for example (*we are not a partner), you as a borrower can quickly and easily find out whether it is worth rescheduling your current loan or whether you should rather continue to pay it off.
An additional cost component, which only occurs with real estate loans and construction financing, are the fees for a notary and any changes in the land register. Typically, these fees amount to about 0.2% of the outstanding loan amount.
fee type | Amount of fees (% of the remaining debt) |
---|---|
Prepayment Penalty | Remaining term > 1 year: 1% of the remaining debt Remaining term ≤ 12 months: 0.5% of the remaining debt |
Fees for notary and land register | 0.2% of the remaining debt (only for construction financing) |
The prepayment penalty plays a crucial role in debt restructuring, especially in mortgage lending. It is compensation that the borrower has to pay the bank if he repays a loan before the end of the agreed term or outside the contractually agreed notice period.
Banks and other lenders charge this fee to compensate for the loss of interest they incur by prepaying the loan. When you take out a fixed-rate loan, the bank calculates the expected profit from the interest payments over the entire term. If you repay the loan early, the bank does not receive this profit and therefore charges the prepayment penalty as compensation.
Let's take an example:
You have taken out a mortgage for a property and arranged a fixed-rate loan with a term of 10 years and an interest rate of 3%. However, after 5 years the interest rates have reduced to 1.5% and you decide to refinance to take advantage of the lower interest rates.
If you repay the original loan early, however, the bank will have to forego the future interest gain it was expecting. Therefore, it will charge a prepayment penalty. This fee is usually calculated based on the remaining loan amount and the difference between the original interest rate and the current interest rate.
Suppose the remaining loan amount is 200,000 euros.
The bank would have charged interest of 3% on this sum over the remaining 5 years, which corresponds to 30,000 euros. However, since the current interest rate is only 1.5%, if the bank lends the money again now, it would only have received $15,000 in interest. The prepayment penalty could therefore only be around 15,000 euros to directly compensate for the bank's loss at this point.
It is important to note that the exact calculation of the prepayment penalty is complex and depends on various factors. These include the exact conditions of the loan and the specific regulations of the lender. It is therefore important to seek professional advice before rescheduling.
It's important not to borrow more money than you can afford to pay back. The monthly installments should fit your budget.
SCHUFA self-check:
Before applying for a rescheduling loan, it can be worth requesting a free copy of your own data stored at SCHUFA. If you find incorrect, statute-barred or already paid entries in this overview, you can request a deletion and thus achieve an improvement in the SCHUFA score. And a better score at SCHUFA leads in most cases to cheaper loan offers.
If income has increased recently, you can use the higher disposable net income with a debt restructuring loan to get better interest rates with a higher monthly rate and a shorter term. This can ultimately save you money.
We cannot offer you a direct list, as this changes according to current offers. However, on the following page you will find an up-to-date comparison option.
Disclaimer: We are not affiliated with the landing site and ask that you do your own research on the results before making any financial or other decisions.
A debt restructuring, even if there is a garnishment of wages, is basically feasible. However, a wage garnishment can usually result in a negative SCHUFA entry, which could significantly reduce the chances of getting a new loan from the bank.
There are loans that are granted independently of SCHUFA.
However, these often come from less trustworthy providers or are so expensive for borrowers that debt restructuring could result in further debt. Instead of taking this route, it is advisable to contact a debt counseling center or a state-recognised, certified and qualified insolvency advisor.
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