The current low interest rates in the European Union are bringing golden times to borrowers and consumers who would soon like to take out a loan from the bank: Not only banks can currently borrow money from the Cream Banks as cheaply as never before – the institutes have recently been giving the best conditions also to their customers: Since the beginning of the year, numerous Infra Banks have significantly reduced their interest rates on consumer loans.
High savings potential through debt rescheduling
If you are currently planning a major purchase, you can now finance it at particularly low interest rates even without saving. But even consumers who took out a loan from a bank a long time ago are currently benefiting from the low interest rates: If you now pay a loan at a higher rate at your bank, you can save a lot of money by rescheduling a loan with a lower interest rate.
In order to calculate the savings potential that can now be achieved through a debt rescheduling, consumers should simply use a credit comparison to determine what interest rate level banks would currently charge for a loan in the amount of the remaining liability – afterwards, the interest costs associated with the existing, expensive loan would still be due during the remaining term, compared with the new, accruing interest costs of the cheaper debt rescheduling loan – the difference corresponds to the potential savings from debt rescheduling.
Easy debt rescheduling thanks to credit comparison
However, the savings in rescheduling are reduced at some banks by an additional fee: the so-called prepayment penalty. Some financial institutions charge this fee because they lose interest payments if the loan is repaid early. Although the prepayment penalty is between one and 0.5 percent of the outstanding loan amount, depending on the remaining term, in most cases the savings from rescheduling exceed this fee.
Contrary to what many consumers think, rescheduling an existing loan takes about the same amount of time as changing accounts: the consumer can use a loan comparison to conveniently apply for the desired loan from the sofa – the only important thing here is that the purpose of the rescheduling is direct is stated in the loan application. After the submission of the credit documents, a successful credit check and the payment of the loan amount, the new bank replaces the loan with the old bank using the borrower’s proxy.