The liberalization of the financial market through globalization and the advancing development of the Internet have made loans significantly cheaper than in the past. Anyone who took out a loan ten years ago pays significantly more interest than who would borrow the same amount over the same term today. Many people would therefore like to restructure their debt. The problem: The old loan debits the credit entry and makes it difficult to take out a new loan. A debt restructuring with negative credit – there are a few things to consider.
Debt rescheduling: What does that actually mean?
Debt restructuring is the replacement of an old loan with a new one. This makes sense if the interest on the new loan is lower than the old one. However, the old credit must include the possibility of debt restructuring. This would be given, for example, by a special repayment clause in the loan agreement.
For a debt rescheduling with negative credit you have to solve the problem of bad entry in the “Protection Association for General Credit Protection”. “Negative credit” means that the risk assessment that credit has made when applying for a loan through the applicant based on various economic information from the applicant does not recommend lending.
Debt restructuring options with negative credit
For a debt rescheduling with negative credit, an applicant must therefore find a bank that ignores this credit valuation. If you take out the new loan from the bank, which also has the old debt, the financial institution usually recognizes automatically that the total debt is reduced by the debt rescheduling and allows the debt rescheduling with negative credit. The same applies in the event that a guarantor with positive credit should be ready to guarantee the new loan. On the Internet you can also find offers from Internet banks that offer loans without credit. This means that they not only ignore credit when lending, but also do not report the new loan to them.