Refinancing Loans

A loan for debt is often referred to as a refinancing loan. In a refinancing, a new loan—usually taken out with a different bank—is used to replace an old loan. The reason for this can be very simple: the new installment loan from another lender has lower interest rates, and as a borrower you therefore pay less. When exactly such a loan for debt is necessary and what advantages it offers, we explain here.

When is a Loan for Debt Needed?

The purchase of a car or a washing machine can, depending on the stage of life, be an indispensable necessity. If the consumer does not have the required amount in savings, loans and installment payment concepts often help in many situations to cover the costs of the respective purchase quickly and easily. Financing thus serves as support.

If unexpected expenses occur—for example due to a new phase of life such as a move, starting a family, or a fire accident leading to timely and essential new purchases—a follow-up loan and further installments are often the consequence. This is also referred to as a loan for debt.

An uncertain labor market, illness of family members, or illness of oneself can, depending on severity and insurance coverage in the event of sickness or disability, lead to the beginning of delayed installment payments. And before you know it, you are caught in the debt trap.

If payments are not made for increasingly long periods, creditors become more and more visible and will try to agree on a repayment plan with the debtor that corresponds to the (net) income. The creditor wants the assurance that you will repay your liabilities—that is, the money to be paid back—as promptly as possible under the previously agreed conditions. Therefore, pressure increases on both sides when delays occur. To avoid having to resort to insolvency, choosing a loan for debt is advisable. You should also refrain from relying on your bank overdraft. The overdraft may seem like a good short-term solution, but over a longer period the debit interest there is significantly higher than on other installment loans.

Requirements for a Loan when in Debt

Delayed payment of agreed installments leads over time to considerable pressure, which affects the debtor’s psyche and physical health. Close relatives, colleagues, and acquaintances will, depending on the degree of strain, be more or less confronted with the borrower’s overload.

This overload can be avoided if you early on gain an overview of your actual financial situation and obtain information about a loan for debt. The requirements for a loan for debt are generally a net income above EUR 850, or you can make use of the option to name a solvent guarantor. It can be worthwhile to compare different providers with their commitments such as terms and interest rates. Taking out a loan without first comparing the different lenders could become a disadvantage later. You should also consider and consult a debt counseling service to get a better overview of your current financial situation.

If the debtor is over 18 years old and can prove the required minimum net income with pay slips from the last three months, they have the option to apply for a loan for debt at MAXDA.

Conditions for Loans when in Debt

Through cooperation with strong partners from the banking sector, MAXDA’s premium conditions as a credit broker are passed on to you through reputable loan grants. When agreeing on the loan installments, you can receive advice from one of our employees either on site or online and design a repayment plan that fits your lifestyle and current financial situation.

The application for a loan for debt itself can be completed quickly and easily via our website. If information such as name, address, date of birth, employment status, marital status, and net income is complete, you will promptly receive an email and a letter with documents for the loan for debt.

You can also rely on the support of our friendly staff while filling out the forms. Once the documents are completed, send them back to MAXDA. Your application will be processed within a few working days. Processing time can also be affected by requesting your current Schufa data to check your creditworthiness.

A loan for debt can have a loan amount ranging from EUR 3,000 to EUR 250,000. If you opt for a loan without Schufa, you can use a maximum amount of EUR 5,000. The disbursement of funds takes place after approval. A few days should be allowed here as well, since public holidays, weekends, or transfer times between external banks cannot be influenced. A loan without Schufa is therefore more suitable for smaller purchases.

Four weeks after receipt of the funds in your bank account, the first installment for the loan is due. Payment is expected punctually on the 1st or the 15th calendar day of a month. Regardless of the term of your loan for debt, an annual percentage rate starting at 3.99% is charged.

Information about the Loan and MAXDA

MAXDA works with leading banks from Germany and banks worldwide. You can rely on customer-oriented and fair service, with advice from the first inquiry, through filling out the loan application, to the conclusion of the loan for debt.

Even after loan approval, our staff are available as contact persons and will answer your questions Monday through Friday. Contact our staff by phone or email. We will gladly arrange a personal appointment with you or provide competent information over the phone.

Describe your case and your circumstances. Together with you we will find a secure and good solution for a loan for debt so that you can embark on a stable path out of debt within a foreseeable time. Customer satisfaction and service are as important to us as the clear and understandable formulation of the contract components. Benefit from us as a service provider and our many years of experience in lending and cooperation with lending institutions.

We want you as a consumer to remain liquid and not have to worry about securing your everyday life. The loan inquiry itself is free of charge. On www.maxda.de you can obtain comprehensive information and gain an overview of a loan for debt. A loan for debt has meanwhile become a frequently chosen form to deal constructively with over-indebtedness through debt restructuring. Contact us — we look forward to your inquiry.