The loan rescheduling for pensioners and seniors is an opportunity to convert a current loan contract into a new, more favorable one and save money.
The chances of getting a more favorable loan for people after their working lives have increased in recent years, as there are more and more loan offers on the market that simultaneously raise their age limit.
The following overview shows those providers who enable retirees to redeem existing loans:
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Where do retirees get the chance to restructure their debts?
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Debt restructuring offers for pensioners
The instant loan from CreditPlus Bank is recommended for pensioners, especially for smaller sums, because of the lowest initial interest rate. In addition, free unscheduled repayments are possible at any time.
Also the Targobank offers seniors, with a monthly minimum pension of 600 euros, the possibility of the Targobank on-line credit for the redemption of existing credits to use. Especially in the area of annual loans (recommended for new customers), the loan for pensioners and retirees is also ideal for higher loan amounts and the desire to pay the first installment optionally at 59. or 89. Payable the day after loan closing and make free unscheduled repayments at any time.
Why should pensioners reschedule?
For pensioners and retirees there are now more and cheaper loans than before. The increased life expectancy has led to some providers increasing their age limit or dropping it altogether. Therefore, the chance of a more favorable loan has also increased.
Two reasons speak for a rescheduling of loans even at an advanced age:
On the one hand, the loan redemption can be worthwhile if a significantly more favorable loan is available on the market. This is very likely with the current low interest rates.
On the other hand, by increasing the term, the monthly rate can be lowered by switching to a loan provider that allows a longer term due to a higher upper age limit.
For example, the majority of loans have a maximum age limit of 75 years. At the age of 70, a current loan would have a maximum remaining term of five years. With the SofortKredit from CreditPlus, on the other hand, the upper limit is 80 years; with the Top-Kredit from norisbank, it does not apply at all. Thus, by rescheduling the debt, you can stretch the remaining term and thus reduce the monthly installment.
Problems and solutions in debt restructuring for pensioners
Credit chances improve by collateral
Even if now more seniors than a few years ago find loans at some banks, they are still considered to be the target group with increased default risk. This may mean higher interest rates or rejection of the loan.
Who can present however thereby collateral to the bank, which can increase straight in the elevated age its chances on a favorable credit. Many pensioners are, for example, in possession of a paid-off property or a life insurance policy.
Endowment life insurance as loan collateral
If you have a capital-forming life insurance policy, you significantly improve your chances of getting a loan approved. The endowment policy has a surrender value that can be found in the documents. The amount of this surrender value then serves the bank as collateral for the loan. But even in the event of death, the payment of the sum insured serves to secure the loan. A term life insurance policy, on the other hand, cannot be used as collateral, as it does not represent an equivalent value in the event of survival.
Accordingly, pensioners in possession of real estate or endowment insurance should attach the appropriate documents to the loan application!
The options for debt restructuring for seniors
There are two recommended ways for seniors to save money by paying off their loans. The first possibility leads over the rescheduling of the current loan into a more favorable conventional credit. Also a consolidation of several small loans is possible and recommendable, since this can mean not only cost savings, but also more overview, since only a single instead of many monthly installments is to be paid. Debt can be rescheduled both for loans without a specific purpose and for special loans with collateral assignments, such as car loans.
As a second alternative, there are now credit platforms that broker loans from private individuals. The best known are the personal loans from smava or auxmoney. A bank takes over the handling of the personal loan, so that this rather new form of lending is just as secure as a bank loan. The advantage for pensioners is that basically all occupational groups and also age groups are admitted here. It is only important to describe in a description as well as possible his rescheduling project and his financial situation. If enough private investors can then be found for the project, the loan comes about. Of course, the creditworthiness of the potential borrower is also checked by Schufa in this case.