The current economic situation in the Federal Republic of Germany can justifiably be regarded as an opportunity for the end user to improve his own economic situation favorably. Anyone who repays an old existing loan should immediately repay this loan, because interest rates have historically been lower than ever. This means that debt rescheduling is now very reasonable economically, as it can be expected that interest rates will inevitably increase in the future. Nobody should miss out on the opportunity to benefit from the low interest rates since it is ultimately a question of the effectiveness with which debt freedom ultimately approaches. Anyone who repays an old loan should ask themselves the question of whether he would like to pay further for expensive interest or whether he should replace the loan immediately to ultimately achieve a higher repayment of the actual loan amount. Any economist who could get an insight into the individual’s economic situation would advise to pay off the loan immediately. However, there are some things that need to be considered, so that the debtor ultimately does not come from the rain in the eaves. The market for lending institutions has greatly improved as a result of the increasing globalization that is due to the Internet, so that ultimately anyone who intends to replace his loan immediately, will find the right loan offer for him.
What is to be considered when replacing the loan immediately?
First of all, the new loan offer should, from an economic point of view, also be better than the old existing loan, since otherwise it would make no sense to have the loan replaced immediately. However, this profitability is not apparent from the monthly burden, as ultimately it depends on how high the repayment rate and the interest rate level of the respective loan is. If one considers the circumstances with which the current generation 50+ once financed their real estate, then it makes perfect sense to have the loan replaced immediately, since at that time it was still financed with an interest rate of over 10%. Anyone who still repays his loan on such terms should definitely repay his loan immediately, since today’s interest rate stands at one-fifth of the conditions at that time and thus a much faster repayment of the loan can be achieved with the same monthly basic charge, without the economic situation of the individual thereby markedly worsened.
Not just a real estate loan is interesting for the rescheduling. Car financing is also considered as a loan and since the partner banks of car dealerships can generally be regarded as more expensive, the car owner should have the credit replaced immediately, otherwise the profitability of their own car deteriorates from year to year. If you want to repay your loan immediately, you should address this openly with the lending institution when making the application, as there are now banks that replace the loan immediately without the applicant to carry out all the administrative work that is related to the loan immediately on their own initiative must let. The loan immediately from bank to bank is much easier and quicker, because the banks communicate with each other on the short service route and the money can also be transferred from bank to bank much faster.