The loan for indebted people is always possible, depending on their personal credit rating. The situation is different for over-indebted borrowers. For them, the “red line” of lending has already been exceeded. The contribution deals with additional loans, also in the context of debt restructuring.
So it’s not a problem.
In practically every curriculum vitae, situations arise that make the loan inevitable for indebted borrowers. A classic example of this is real estate acquisition. A house or a condominium, nobody pays out of their pockets. A mortgage loan is the most common type of loan for such large purchases. But even for people who have bought a house or an apartment, the world does not stop there. It often takes up to 20 years before such an object is actually paid off. For the property owner, the loan usually starts with the wear and tear of the vehicle despite the current loan.
The vehicle doesn’t last forever. Financing a new car from equity is practically impossible for home builders. Nevertheless, mobility has an important place in the life of families. You can rarely get to work without a reliable car. Few people can afford to lose their job or even achieve it in a very time-consuming manner. A reliable vehicle is therefore an essential purchase. Provided that creditworthiness permits, credit for indebted people – as a vehicle loan – is almost the rule for property owners.
Debt restructuring as an increase in liquidity.
Loan commitments are often very long-term. A long period within which the monthly installments are to be paid keeps the amount of the installment low. However, it sometimes becomes problematic when the living and income situation changes. An uninterrupted career, practically only civil servants now have. For the majority of the population who work in the free economy, the times of unemployment are present in almost every résumé. It becomes problematic when unemployment lasts longer or when the income in the new job has decreased. The old loan obligations can then become a burden.
The loan for indebted people as a debt rescheduling loan can be the only way out of this predicament. The concept of debt restructuring is very simple. The current loan obligations are repaid early via the debt rescheduling loan. As a result of the payments already made, the total amount of the loan amounts to be reduced has decreased significantly. The reduced total will be refinanced when the debt is rescheduled. So the term of the loan starts again. The rate is getting lower, liquidity has been gained.
Consumer loans despite existing liabilities.
Existing liabilities are not necessarily an obstacle to further consumption. Depending on their personal living and income situation, each person has an individual credit line. The loan for indebted people remains possible until this line of credit is reached. Each provider evaluates what he sees as acceptable for the borrower. As a rule, the credit providers assume the sum of the disposable income – above the attachment limit – for their assessment.
With small loans and department store loans, the evaluation process is even easier. In this context, the loan for indebted people is often only dependent on the “clean” private credit checker and the income from work.