Rescheduling in difficult cases – debt restructuring



Rescheduling difficult cases can, but need not, be the solution to financial problems. Anyone who has taken on his monthly obligations and can no longer raise the installment can pull the rip cord by rescheduling his debt and eliminate his liquidity problems if he manages to significantly reduce the monthly debt restructuring burden.

What happens when a debt restructuring

What happens when a debt restructuring

Of course, rescheduling does not mean that the debt ends up having another. Debt rescheduling is the process when one or more loans are redeemed from one lender and another lender agrees to a new loan agreement. The purpose of such a project is that extending the term, for example, can reduce the monthly burden. In addition, rescheduling low-cost financing can reduce the cost of borrowing. The debt restructuring itself is not a problem.

However, rescheduling in difficult cases is not so easy to realize. It becomes difficult whenever the borrower has lost his job, is divorced or has a negative credit bureau, for example. As a result, he becomes a risk customer and banks are generally unwilling to take the recognizable risk. Rescheduling in difficult cases is usually only possible if the borrower can provide additional collateral, for example in the form of a solvent guarantee.

The alternative to rescheduling

The alternative to rescheduling

If rescheduling in difficult cases is absolutely unrealizable, that does not mean that there is no solution to the financial difficulties. Rescheduling is not always the optimal solution anyway. Many borrowers do not know that, with a rescheduling just a new hole in order to cram an old one. This is figuratively speaking, of course, but describes the situation. Anyone who has financially accepted and recognizes in time can help themselves by seeking a debt counseling service and getting professional help there.

The help of a debt counselor can be more successful in the end than a debt restructuring in difficult cases because it tackles the root of the problem. Debt counselors contact creditors, agree to deferment and payment pauses so that the borrower gains time. He may then be able to repay at least part of the debt to the creditors. In any case, a debt counselor is the better solution if borrowers are up to their necks. The debt rescheduling loan could probably only be closed on very bad terms, so the debt will continue to grow due to the higher cost of borrowing.


A rescheduling in difficult cases wants to be well considered. Mostly, financial problems can only seemingly be solved in the short term. Those who are not sure, should seek a debt counseling and financial advice. Anyone who has once fallen into the debt spiral usually can not get out without help. The rescheduling is usually not helpful because it does not solve existing problems, but only veiled.

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