GrantsFinancialSVS

Your Home for Financial Success

Prematurely Repay Credit

Legal basis for the installment loan is the rate credit agreement only the question In case of an early redemption of the rates loan agreement arises to the conditions. The financial impact on the so-called old and new contracts are identical to those for cancellation of rates credit agreement. The question can be answered so a clear yes, if an installment loan can be repaid prematurely. Nowadays the majority of credit institutions instalment loans with the explicit range of special repayment or early repayment offers. For the borrower, such credit offer is particularly interesting, if it offers this contractual option a, and if on the other hand for no additional charges. Installment loan can be repaid so accurately but at least in the contractually agreed amount.

Debt to calculate means and compare the restructuring has the effect that the remaining installment loan will be replaced by the introduction of a further rates loan prematurely. For this it can give different reasons. If lending rates at the time of the planned restructuring are significantly cheaper than for the current installment loan, then a reason can be that. The cost design of the credit institution is crucial. Although it is ultimately a remaining installment loan, fees for both rates loans are payable. That is often neglected by the borrower, because the first installment loan is taken up and mentally checked off by replacing a long time ago. The focus is on the new installment loan and the effect obtained debt restructuring, so to get superseded the previous installment loan. Also in this case, an extensive and detailed comparison of credit worthwhile.

Often also a change of the credit institution is associated with the restructuring, including the opening of a new current account. In this case, it is particularly easy to rationalize that associated processing costs incurred for a new installment loan the borrower. The rates credit as a right the borrower usually responds short-term credit on the current situation. The debt restructuring and the success related to have only a single credit commitment, and are also still over extra cash to be able to have.