Installment loan rescheduling – it’s so easy to save!

Like many other Germans, you have certainly made good intentions for the coming year. If your plans include finally organizing your finances and putting aside a little more money each month, we have a tip for you: Take advantage of the current low-interest rate consumer credit environment and owe an existing debt on a new, installment loan around! Especially with credit agreements that were closed more than three years ago, the savings potential can be great, as interest rates on installment loans have dropped significantly since then. Consumers who pay their loans today at the interest rates they pay in the past, therefore, give the bank a lot of money each month.

Repay old installment loan now – save money next year

In order to determine which interest rate you would pay when taking a current loan, only the outstanding loan amount and the desired duration in a free credit calculator must be entered – the interest rates offered by different banks for such a rescheduling calculates the calculator within a few moments for you.

The savings that you can make each month by rescheduling an old loan for a new loan at current terms equals the difference in future interest payments on both loans. In order to determine this amount, it only has to be calculated how high the interest payments would be that would be due from today for the complete repayment of the old loan. From this amount, the interest costs are deducted, which are due when receiving and repayment of a corresponding new loan on current terms.

Prepayment penalty can reduce savings

The interest savings that you can achieve by rescheduling the old loan for a new loan may be reduced by a fee that the old bank demands for early loan repayment: the early repayment penalty. Depending on the maturity of the old liability, the Bank has the right to charge a premature repayment of the loan in the amount of 0.5 or one percent of the outstanding debt . In this way, the money house wants to compensate for the interest rate loss caused by the early repayment of the loan. In most cases, the savings exceed by lower interest payments, the amount of the early repayment and the borrower can by a credit remortgage save a lot of money.