Lending has never been as cheap as it has been today. By implication, this means that old loans that have been running for a while are too expensive by today’s standards. And some old contracts are even extremely overpriced. The way out: debt repayment.

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Maybe you’re paying off old loans that you made a few years ago? Then you should consider ways to reschedule. Because under certain conditions you can noticeably reduce your monthly burden – immediately and permanently.

Repacking loans – this is how it works

The idea behind the rescheduling is simple: you take out a new loan at today’s extremely low interest rates. With this loan you pay off your old loan. If you repost your loans, you say goodbye to the high interest rates of the past and save money.

In particular, if the residual term of your old loan is still 12 months or more, rescheduling usually makes sense. Although many banks charge a fee for early replacement. However, more than 1 percent of the remaining debt may not amount to this requirement. With short residual terms of up to 12 months, only a maximum of 0.5 percent is allowed.

The magazine Finance test has calculated that you can often save several hundred euros with a rescheduling. With high credit sums and long remaining terms even savings of more than 1,000 euros are possible.