A collective loan is a widely used method of clarifying open questions and gaining control over your finances. Many Germans can even save a lot of money if they apply for a collective loan. But what exactly is a collective loan? What is a credit line? Then what is debt restructuring? And is that a good idea for you? We will take a closer look at this on this page so that you will know afterwards whether a collective loan or a framework loan suits you and your finances. You will also find out if you are saving money and where to apply for your loan cheaply.
What is a collective loan?
Before we can decide whether we want to take a closer look at the different providers, we first have to have control over what a collective or framework loan, often called debt restructuring, is. Only after you know this can you take a closer look at and understand the various offers on the market. You can compare the loan offers with your situation, needs and wishes.
A group loan is a loan that you take out to collect all of your small loans from a loan provider. So you benefit from a lower interest rate and save money. It also helps you get a better overview of your finances. This process is called debt restructuring.
How do I find the cheapest credit line?
- Enter your age, the desired amount and the term of your new collective loan in our price comparison calculator.
- Compare the loans that are shown.
- Apply for the collective loan that suits you best for free.
Bundle all your current loans into one collective loan
With a credit line, you collect all of your small debts from previous loans with a bank into one larger loan. This gives you an overall interest rate that is usually much lower than the one you pay for the many small loans and their interest. With the money from the collective loan, you pay off your so-called “accumulated debts” and then only have a monthly repayment (repayment), which is cheaper and much easier to understand.
The main reason to optimize all of the debt you have somewhere is that you can get a much lower interest rate and therefore more money on other things. The increased transparency also makes it easier for you to plan your finances for the future and keep track of how much money you have each month. It gives you peace of mind and is a good first step towards achieving a healthier and better financial position. Ultimately, you can afford to do more.
Where can I collect my loans?
In the past, you mainly obtained your various loans from the bank if you were approved as a borrower. Banks have a strict lending policy that has worsened after the 2008 financial crisis. Financing your debts to the banks is not that easy, especially if you don’t have the ability to provide collateral in the form of a house or an expensive car.
If you’re having trouble getting your loan approved at the bank, you can take advantage of the wide range of online loans that have emerged in recent years. The prices are often lower than those offered by your local bank. Applying for a loan online from one of the loan providers is both easy and quick, and approval is often quick and easy. Since many Germans have multiple loans at the same time, we see a natural increase in the number of companies offering customers to collect their loans from them and then repay their other loans to save money on interest rates.
How much can I save on a collective loan?
It is very individual how much you can save by bundling your loans. It depends on several factors, including:
- How many loans do you have open now?
- The size of your loans.
- What you pay in interest and fees for your current loans and finances.
- Where you want to take out your credit line and how high the interest rate is there.
You can calculate your savings yourself by calculating what you are now paying with interest. Then compare it with the offer for a collective loan that you can find here on the website.
If you have a good relationship with your bank advisor, you can also find out if your local bank can offer you a low interest rate mortgage. It is a good idea to thoroughly compare prices and terms before deciding where to apply for your collective loan and become a customer.
Is it a good idea to pool your debts?
As a starting point, it is always a good idea to collect a lot of small debts with a single lender. Of course, this only applies if you receive a lower interest rate when rescheduling. However, this is the case in most cases. As a rule, you save a lot of money every month and only have one installment that you have to pay instead of the many different ones that you had before. It provides a clear overview, more air in your head and relief in your financial situation.
If you have the opportunity, our experts recommend that you investigate your debt collection options with a loan provider.