For as many consumers it starts with an overdraft facility: Over time they slip deeper and deeper into the MRP in or even over the limit Dispo out. Then it can quickly become uncomfortable, especially when looking at the bank statements. Many banks pay well for the provision of a overdraft facility in the form of expensive overdraft and overdraft interest.
We cannot speak of a low interest rate level in this area, so there can only be one important piece of advice in such a situation: Be sure to consider the options for debt restructuring in order to reduce costs.
First step: inventory
To get an overview of yourself first, you should record your current balance. You should also consider whether it is necessary to take out a small amount more than credit in order to settle the previous liabilities.
If you calculate too little, you may quickly come under pressure again and have to use any overdraft facilities. If you are certain about the amount of the loan, consider how much a monthly installment can be paid. To do this, you should first compare your income and expenditure in the month. Now try to assess your own credit rating.
Credit bureau information is helpful, which you can also request for yourself in advance. A good credit rating results from the parameters of permanent employment with a probation period, corresponding income, previous payment history and other key data and requirements, which can vary per provider.
If you only have a medium credit rating, you can expect higher interest rates, because this is how the banks offset their credit default risk. Customers with a rather poor credit rating have to be prepared for a possible rejection of their loan applications.
Debt change – but how?
If you are aware of the desired loan amount, possible rate and your own creditworthiness, there are the following options.
- Debt rescheduling into a new loan on better terms
- Overdraft checking account with another bank with more favorable conditions
- Use credit platforms
- Find a conversation with the previous bank
Make a free loan interest comparison and apply for a suitable loan directly
One of the best ways to reschedule is a new loan. To do this, first compare the offers, for example in our free loan comparison. Enter the desired loan amount and the amount of the monthly installment or term and then calculate the results.
When looking at the credit results in our comparison, two types of loans are offered: loans with interest rate-calculated interest and loans with interest rate-independent interest. In the case of credit-dependent loans, the ultimately valid loan interest is calculated on the basis of the borrower’s creditworthiness and therefore cannot be clearly stated before making a personal offer.
In this case, consumers remain uncertain about the actual cost of the loan until the loan application is made and the individual loan offer has been calculated by the bank. In the case of loans, the interest of which is calculated irrespective of the creditworthiness, on the other hand, one knows immediately what costs will be incurred for taking out the loan.
However, the following also applies here: Ultimately, the bank decides whether the loan is to be issued or whether the customer’s creditworthiness is sufficient to grant the loan, even if the interest is calculated independently of the creditworthiness.
Would you like a new checking account with overdraft facility?
If you would like to open a new account anyway, you can consider opening a new current account with a credit facility. For a selection of suitable providers, you can use our checking account with overdraft comparison calculator. First of all, compare the amount of interest on the overdraft facility and overdrafts. You should also pay attention to possible fees for cards or account management, if possible they should not be higher than at the old bank.
However, keep in mind that the future bank will check its creditworthiness and therefore the establishment of an overdraft facility cannot be taken for granted. In addition, if the conditions offered for checking accounts with overdraft facility on the market differ only slightly from their current costs and conditions, you should resort to other options for debt rescheduling.
Alternatives to bank credit
Consumers who are looking for a loan, but have little chance with the big banks, could take a look at the offers on a so-called credit platform. Private investors invest in the desired loan on the credit platform. In some cases, better conditions can be offered here. But here, too, you have to be able to sell your loan request more or less and keep an eye on realistic conditions. Private investors will also not want to take excessive risks.
Have you already gone through all the options and none of the points mentioned is possible? Then you should at least seek a conversation with your current bank. Perhaps it is possible to switch to a loan that has at least lower interest rates than the normally quite expensive overdraft rate.