A debt rescheduling is due
If there are several loans at the same time, then you should summarize the loans. Because for many small loans there are also several installments and you can quickly lose track of the finances here. It is better to combine the existing loans. In order to be able to merge loans, a debt rescheduling is due and it does not matter whether the previous loan is an installment loan, an overdraft loan or a consumer loan.
Summarize loans and save
You can only benefit from a debt restructuring because you only have to pay one installment. This ensures a good overview of the financial situation at all times and it is very unlikely that an installment will be forgotten and not paid. In addition, this loan is also much cheaper, because the interest rates at the conclusion of the contract are always calculated. The credit rating is also improved, because if several loans are entered in the Credit bureau, this is not very advantageous for your solvency. Several repayment rates can easily exceed the household budget, at one rate this is almost impossible. Summarizing old loans only brings advantages, a loan repayment will definitely be worthwhile.
Compare the conditions
Of course, you should also compare well with a debt rescheduling loan, because all banks have different terms. A loan comparison is imperative and it is also very simple. You only have to specify the desired term, the loan amount and the purpose of use and the cheapest loans are displayed. The interest rate is very low at the moment, so rescheduling can only save you money.
The effective annual interest rate should always be used as the basis for the calculation, because fees and other costs are not included in the current borrowing rate. The interest must be compared to the current loan, because this is the only way to assess whether a debt rescheduling is worthwhile. So the cheaper the new loan is, the more you can save.