Debt restructuring despite poor creditworthiness.

Many people in Germany live on the subsistence minimum, second jobs have to be accepted so that an acceptable livelihood is guaranteed at all. But even people with only a small income are always in the abyss with one leg. When these people experience something unexpected that far exceeds their financial means, they often think about a loan. But it is not uncommon to get bogged down because of a loan and an installment payment there. You no longer have an overview and think about debt restructuring despite a poor credit rating.

A poor credit rating is an unmistakable sign that the customer is not getting on with his finances. If you have a lot of debts and pay them to different creditors, debt restructuring would be a way out despite a poor credit rating.

The outlook

The outlook

However, debt restructuring is a challenge in spite of poor creditworthiness, but not at all impossible. The purpose of debt rescheduling is to combine existing liabilities into one loan and only serve one creditor. A debt rescheduling is only worthwhile if the bottom line is savings and the installments are affordable again. Many banks also offer to change a loan within its term. This allows the customer to increase or decrease the rates.

But there are also borrowers who took out a loan a few years ago and are paying them back dearly. The current level of low interest rates could lead to a cheaper debt if the debt is rescheduled. But to what extent the bank agrees to rescheduling despite poor creditworthiness would have to be asked. However, banks have very precise ideas regarding lending and debt restructuring. They want security and the guarantee that debt restructuring will also bring success.

The debt rescheduling can be carried out at the bank where the other loans are to be paid or at another bank. The goal of debt restructuring should always be savings with lower monthly payments. Debt restructuring despite a poor credit rating is not a good star because the bank is checking the creditworthiness of the customer. If you have a bad credit rating, perhaps through taking out a lot of loans, banks are no longer creditworthy.

However, if the bank sees that a credit default can occur due to the customer’s poor financial situation and that they no longer see their money at all, they could agree to rescheduling despite their poor credit rating. The individual case is often checked here. If he wants to seek debt rescheduling from another bank by repaying his loans, the weakened credit rating could put a spanner in the works here. Banks generally only grant loans if the income is high enough and the Credit Bureau is clean.

Then the option at the bank where the old loans are open is the better choice. The house bank knows about the customer’s finances and their financial problems. Here the situation could be clarified in a personal conversation. The customer who has mortgage lending has good chances of rescheduling, this is a secured loan that is in the land register.

The bad credit rating often arises from the negative entries that a borrower has. However, if there is only an unpaid bill from the energy supplier or a forgotten phone bill, the chances of rescheduling increase despite poor creditworthiness, since it is only the soft characteristics of the Credit Bureau. Even if an entry is marked as done, the chances of debt restructuring increase. There are many entries that are only deleted after three years, but lose their relevance due to the completion note. Therefore, a self-disclosure should be obtained from Credit Bureau before rescheduling.

Plan the debt restructuring carefully

Plan the debt restructuring carefully

The overdraft facility is often well within the target, the interest burden is considerable. Debt restructuring is also an option for this. Especially when the monthly budget becomes less and less due to the liabilities. In order to carry out a debt rescheduling sensibly, the income / expenditure plan should be at the beginning. This compares the income with the expenditure. In order that the debt rescheduling can also be used concretely, all liabilities should flow into the expenditure. This creates the need for credit and with it the customer can search for a bank.

However, the rescheduling should focus on the fact that a new loan taken out with poor creditworthiness can become significantly more expensive. So loans that were taken out with a better credit rating turned out to be quite cheap. This should also be considered. Banks often also calculate risk premiums, which makes the loan more expensive. It should nevertheless be important to reduce costs and finally to settle smaller and accrued liabilities.

Debt restructuring despite poor creditworthiness – the possibilities

Debt restructuring despite poor creditworthiness - the possibilities

If the talks with the bank are unsuccessful, a loan from abroad could be the solution. These loans are Credit Bureau-free and the loan is not entered. Since these loans are freely available, they could also be used for debt restructuring. In most cases, these loans promote loan brokers.

However, these loans are only granted to employees who have an open-ended employment contract. Trial periods are not permitted. The employment relationship must exist for at least one year. The self-employed and unemployed do not receive these loans. Income is also an important licensing element, it must be above the garnishment-free limit.

The loan amounts are limited. In most cases, only 3,500 USD are approved. The other two loan amounts of $ 5,000 and $ 7,500 are only given to borrowers with excellent credit ratings, ie high incomes. The customer needs to know to what extent the 3,500 USD loan is sufficient for debt restructuring.

Debt restructuring without bad credit is not possible in this country. The so-called Credit Bureau Score plays a crucial role in this. If the loan seeker has a good Credit Bureau score despite the negative Credit Bureau, then a credit attempt at the credit portals could offer the personal loans. However, this process can take some time, because this award is related to the bidding process. But it is always worth trying.

Debt restructuring despite poor creditworthiness could be successful with an experienced credit broker. There are many German credit banks that offer debt restructuring despite poor credit ratings. But the loan seeker cannot easily recognize these. A reputable credit broker knows these banks and can help you find a loan.


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