In the current economic climate, borrowers are benefiting from a remarkable trend: interest rates on loans are falling. For existing loans, this development offers an excellent opportunity to save money through debt restructuring. But what exactly does debt restructuring mean, for whom is it worthwhile, and how high are the potential savings?
What is a debt restructuring?
A debt restructuring refers to the process of replacing an existing loan with a new, cheaper loan. The goal is to benefit from lower interest rates, reduce monthly instalments or shorten the term.
Advantages of debt restructuring:
- Interest savings: Lower interest rates lead to lower overall costs.
- Better conditions: New contracts often offer more flexible repayment options.
- Consolidation of debts: Multiple loans can be combined into a single loan.
Why are interest rates falling?
Interest rates in the credit sector are strongly dependent on the economic situation and the interest rate policy of the central banks. Currently, the following factors play a role:
- Looser monetary policy: Low interest rates from central banks are making loans cheaper.
- Stronger competition: Credit institutions are lowering interest rates in order to remain competitive.
- Lower inflation: A more stable economic situation leads to more favourable financing conditions.
For whom is debt restructuring worthwhile?
Debt restructuring can be beneficial for almost any borrower, especially in the following situations:
- Loans with high interest rates: If the existing loan was taken out at a higher interest rate, the switch is particularly worthwhile.
- Long-term loans: The longer the term, the greater the savings from lower interest rates.
- Multiple open loans: Debt restructuring makes it possible to bundle all loans into a single monthly payment.
- Financial relief: Lower monthly instalments leave more financial leeway.
Example calculation: How high are the savings?
In the table below, we compare two scenarios: a loan with an interest rate of 10.95% and a loan with an interest rate of 8.9% over a term of 84 months.
| Loan amount | Interest rate 10.95 % | Interest rate 8.9 % | Savings per month | Total savings |
|---|---|---|---|---|
| 10,000 CHF | CHF169.39 | CHF160.69 | CHF8.70 | CHF730.80 |
| 20,000 CHF | CHF338.78 | CHF321.38 | CHF17.40 | CHF1,461.60 |
| 30,000 CHF | CHF508.17 | CHF482.07 | CHF26.10 | CHF2,192.40 |
How does switching to a cheaper loan work?
The process of debt restructuring is simpler than many think:
- Check your existing loan: Determine what the terms of your current loan are, including the balance and interest rate.
- Start comparison: Use platforms like kredit-vergleich.ch to find the best deals on debt restructuring loans.
- Apply for a new loan: Fill out the application at the selected bank and indicate that the loan will be used to repay an existing loan.
- Repay an existing loan: The new bank transfers the remaining debt directly to your previous lender.
Why use kredit-vergleich.ch?
The kredit-vergleich.ch platform offers numerous advantages to make debt restructuring as easy and efficient as possible:
- Comprehensive comparison: Find loans with the lowest interest rates in Switzerland.
- Fast Processing: You will receive feedback on your application within a short time.
- Transparency: All costs and conditions are clearly visible, so you can make informed decisions.
- No obligation: Enquiries are non-binding and do not have a negative effect on your creditworthiness.
Conclusion: Benefit from falling interest rates now
Falling interest rates offer a unique opportunity to restructure existing loans and thus save considerably. With a debt restructuring loan, you can optimize your financial obligations and benefit from better conditions. Platforms like kredit-vergleich.ch make the switch easy and ensure that you find the best deals.
Compare your options now and start into a more financially relaxed future!
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