A glance at most current accounts does not reveal any impressive account balances at the moment. December was a very expensive month and many households had to overdraw their accounts. Especially since January is also expensive, after all, numerous insurance premiums are due. Many checking accounts are therefore heavily overdrawn, which in turn gives the banks great pleasure: thanks to the high disbursement interest, they earn good money.
For the consumer: the high interest rates are more than annoying
Especially since they are calculated on a monthly basis and thus can result in a very unpleasant compound interest effect. It is better, therefore, not to overdraw a checking account or simply not to take the Dispo.
If the account is already overdrawn, rescheduling should be considered. By this is meant that a cheap loan is taken up to replace a more expensive loan. This results in the opportunity to achieve an immediate interest savings and thus relieve the budget. Especially since another advantage is that other loans are coupled to a continuous repayment. Many people are not exactly disciplined when balancing their disposition. With a installment loan, this in turn does not matter: The rates are drafted month by month.
When searching a loan consider this 3 crucial things
In the past, installment loans were considered costly and therefore were only partially suitable for offsetting other loans. But now the situation is different: Thanks to low market interest rates, installment loans have become extremely cheap. Many people are able to reduce their interest burden by at least half, in some cases it is even possible to achieve a very large amount of interest savings.
When rescheduling, three things are crucial. First of all, it is important to find a loan that is really cheap. An interest rate comparison must therefore not be left out. Furthermore, the maturity must be appropriate, too long funding periods are not good, even if they promise lower loan rates. In addition, it is advisable to reduce the credit line of the account drastically after rescheduling, so that the debt does not exist again soon.