Debt Restructuring
Debt restructuring is a financial procedure in which one or more existing loans are replaced by a new loan with different rates, terms and interest rates. In Switzerland, the Consumer Credit Act (KKG) allows debt restructuring at any time and free of charge. For this purpose, the previous lender simply prepares a final invoice, which is settled by the acquiring credit institution. In this way, the loan is rescheduled to the new provider.
Particularly in the case of interest savings, rescheduling proves to be extremely advantageous. This is because high interest rates reduce the repayment portion and the interest burden remains high over a longer period of time. Lower interest rates mean that the interest-bearing debt is paid off more quickly and the total cost over the term is noticeably reduced. Depending on the provider, there can be a cost advantage of up to 40%. For more information on debt restructuring, including a calculation example and a link to the appropriate letter or email template for terminating the existing loan, visit our blog. After successful financing, Crowd4Cash will take care of the rest for you.
Debt restructuring thus offers an effective way to optimize existing financing and benefit from more favorable terms. If you have any questions or need support, we at Crowd4Cash are always happy to help.
