Every fifth German uses it regularly, but only very few can really bear its costs – the credit line . According to the latest data from the German Bundesbank, German citizens covered their current accounts totaling 38 billion euros in 2013 – according to a representative survey, eight percent of Germans even use the overdraft on a permanent basis. With an average effective interest rate of 11.3 percent, which Stiftung Warentest has determined in a Germany-wide test, the credit line loan is many times more expensive than a normal installment loan . Therefore, anyone who can not cope with his own financial scope and regularly covers his current account should urgently consider the debt restructuring of his bank liabilities for a more favorable installment loan.
Interest savings through regulated loan repayments
In addition to the immense interest rate differentials, the particularly flexible repayment of the contingency loan drives the costs of the current account overdraft massively upwards: unlike the inclusion of a normal installment loan , the consumer does not agree to repay the financial debt on the credit line with the bank . As a result, bank customers generally overdraw their current account much longer than is actually necessary – as a result, interest costs also rise considerably.
By contrast, when borrowing a loan, the bank always agrees with the prospective borrower on the maximum installment that the consumer must transfer to the bank on a monthly basis in order to be debt free as soon as possible. In this way, the interest payments and the total cost of credit for the consumer with a normal installment loan always remain as low as possible.
Easy replacement of the credit line through favorable installment credit
The rescheduling of the debit – debts on the much cheaper installment loan is very simple: After the consumer has found the most favorable conditions for his financing via a credit comparison, the corresponding loan can be applied for online right now. It is important here that the consumer specifies the purpose “debt restructuring” or “compensation disposition” in the loan application.
If the bank agrees to the financing request of the consumer, the loan is usually paid out within two to five working days in its current account – with the payment of the expensive credit line is balanced and the consumer can start with the regular repayment of the installment loan.