Debt Consolidation: Redeem Loan With Another Loan


Especially real estate loans can have a very long term. 20 to 30 years are not uncommon here. During this time, a lot can change in the credit market. Among other things, interest rates for taking out a loan may go up or down. The latter is especially noticeable in recent years. Because at such a low level as currently, interest rates have long ceased to be.

No wonder that many consumers are considering replacing their old credit with a new and cheaper credit. Replacing credit with credit – calls this the layman, the expert, however, speaks of a debt restructuring.

Redeem loan with another loan – favorable interest rates and more attractive terms for the borrower

Redeem credit with credit - favorable interest rates and more attractive terms for the borrower

Anyone who owns a loan and uses it every month at the agreed rate knows very well that the financial market is constantly on the move and should therefore always be monitored. For this observation you do not have to be a professional and work for a bank. It is sufficient if one sits down once in a while at the computer, opens a credit calculator and creates a non-binding loan offer. And with the loan amount, which is still open for the current loan. If this non-binding and free offer gives you better conditions for a new loan, repaying a loan can be a good way to save a lot of money when repaying the borrowed money. Because even the smallest changes in the effective interest rate ensure that

Keep an eye on the costs

Keep an eye on the costs

Now the banks and savings banks are not particularly pleased when a borrower wants to replace a loan with a loan. Does this mean that the interest income falls away and the customer may even change the bank. Therefore, the banks try to always combine a debt restructuring with costs. For example, there is a prepayment penalty that must be paid in the event of a premature repayment of a loan. The banks see this as compensation for the interest losses incurred by the early termination of the loan agreement.

But beware: Anyone who thinks of a possible debt restructuring when taking out the loan, who can get by on a loan with credit detachment without any additional costs. The option of early redemption can be agreed in the loan agreement. Also free special payments. If you do this, you will not have to spend any additional money on a rescheduling and you will also save money. However, it is always important that a corresponding clause exists in the credit agreement, as it can not be supplemented afterwards. It is therefore worth reading the loan agreement very carefully before signing it.

Always compare exactly

Before it can come to a loan with credit, it is important that a new matching loan offer is found. Here, the loan calculator helps, with the help of the cheapest offers can be determined. On top of that, it is worth telling the bank that manages the old loan that a debt restructuring is planned. So this will in turn create a loan offer, which can be quite worthwhile.

The old loan may only be terminated when the new loan agreement has been signed. A verbal or written commitment for a loan is not enough, as it can always be revoked. Only one signature on the loan agreement from both parties involved is binding. If the old loan is terminated prematurely and there is then no new loan ready for the transfer, this can have unpleasant consequences. Because then you have to look quickly for another financing option, which is not as good as the old credit in the worst case, so that the cost of repayment does not decline, but even increase.

3 alarming signs of debt spiral

1. You want to borrow more and more

A spiral of debt can affect everyone – if we get more and more debt, it can eventually lead to financial ruin. How can you recognize that the threat is real?

Do you like to buy a lot? In this case, there is a risk that the spiral of debt may be a big danger for you. Also people who earn less are more exposed to it, but it is also a problem for those who earn quite large sums.

We should beware of debt spirals – if debts arise, which we will not repay, it is the first step to debt collection, and then, when we also do not indebt, we will have problems with the debt collector. Of course, our data are also entered into various databases of debtors, which in the future will be a big obstacle not only in taking out a loan or credit, as well as the signing of a contract for a subscription. So, how can we recognize that the spiral of debt is a serious threat to us?

1. You want to borrow more and more

You already have one loan, but the money from it is long gone. So you think about taking another one because you do not want to wait until you get a payout. In such a situation, you run the risk of creating a spiral of debt, because there will be more and more loans, and you can have serious problems with paying them off.

If you want to buy something, just wait for the cash flow. Do not take another loan until you repay the one you already have, because then you may run out of money to repay these debts.

2. There is less and less money in your budget

2. There is less and less money in your budget

You have a loan or even a few loans and your budget is getting less and less money for various expenses, including everyday ones? This is another symptom that we should not underestimate. If you already have to tighten the belt to keep pay, then the spiral of debt is also getting closer and it may appear unexpectedly – just one more expense, for example a broken fridge.

When you see that you do not have enough money, put in a variety of ways to save money, so that you can lower your real costs. You can also look for other influences. Whenever possible, pay the smallest loans as soon as possible.

3. You tend to make impulsive decisions

3. You tend to make impulsive decisions

If you are a person who makes many decisions, including those related to money, under the influence of the moment, you can also be in a group that will be exposed to the spiral of debt. You buy things that seem good, but then they do not fit and are not needed. You are trying your hand at online investments that do not bring profits. You scribble with money during meetings with friends. It is these actions that can lead you into a spiral of debt when you already have a loan.

So if you want to avoid the unpleasant consequences of the spiral of debt, remember our advice.

Thanks to them, you can reduce this risk and thus pay off your liability without danger. However, if you already have difficulties, it is worth contacting the lenders and explaining the situation to them, as well as start looking for savings and more influence on their own.

How to Get an Auto Loan!

If you need to buy a new or used car and for this you need a loan, with us you can get what you are looking for! The auto loan offered by Isocredit will allow you to get new liquidity and you can repay it up to 120 months. For more information and a free quote, fill out the form above, we will contact you immediately! Once your request has been defined, the result will be immediate.


With a global company report it is possible to obtain a car loan. But we need to know that only employees and retirees can get a car loan with a global company signal visible in the database.

This happens because with a global company report, any request for a personal loan would be rejected, as all the financial companies access global company and see the negative report. In these cases, employees and retirees can obtain a car loan through the payroll or retirement loan (also known as transfer of the fifth or delegation of payment). Thanks to this type of car loan for those who have a global company report, and its particular method of repaying installments, the financial companies have more guarantees, and therefore grant the car loan even in the presence of a global company report.

Dealerships in general do not have this type of product as the dealers only offer consumer loans tied to the vehicle. The payroll loan, on the other hand, is a non-finalized car loan, therefore not tied to the vehicle, and is the only loan that can be obtained with a global company report.