Debt restructuring for pensioners

Loan restructuring for retirees and senior citizens is a good way of converting a current loan agreement into a new, more favorable one and saving money.

The chances of getting a more favorable loan for people after their working life have increased in recent years, as there are more and more credit offers on the market, which at the same time raise their maximum age limit.

The following overview highlights those providers that allow retirees to pay off existing loans:

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Where can pensioners get the opportunity to reschedule their debts??

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Debt restructuring offers for retirees

Creditplus bank's immediate loan is recommended for retirees, especially for smaller amounts, due to the lowest introductory interest rate. In addition, free special repayments are possible at any time.

Targobank also offers seniors the option of using the targobank online loan to redeem existing loans, provided they have a minimum monthly pension of 600 euros. Especially recommended in the area of annual loans (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 on the 59th day of the loan. Or 89. Day after taking out the loan and to make special repayments free of charge at any time.

Why retirees should reschedule?

There are now more and more favorable loans available for pensioners and retirees than in the past. Increased life expectancy has led to some providers raising their upper age limit or dropping it altogether. Therefore, the chance of obtaining a more favorable loan has also increased.

There are two reasons for rescheduling loans, even in old age:

On the one hand, it may be worthwhile to pay off the loan if a significantly cheaper loan is available on the market. This is very likely given the current low interest rate environment.

On the other hand, the monthly rate can be lowered by increasing the term by switching to a credit 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 an age of 70, a current loan would have a maximum remaining term of five years. With the immediate loan from creditplus, on the other hand, the upper limit is 80 years; with the top loan from norisbank, it does not apply at all. By rescheduling a loan, you can stretch out the remaining term and thus reduce the monthly payment.

Problems and solutions in debt restructuring for pensioners

Improve credit opportunities through collateral

Even though more seniors are now finding loans with some banks than a few years ago, they are still considered to be among the target group with a higher risk of default. This may mean higher interest rates or rejection of the loan.

However, if you can provide the bank with collateral, you can increase your chances of getting a favorable loan, especially in old age. Many pensioners, for example, are in possession of a paid-off property or life insurance policy.

Endowment life insurance as collateral for a loan

If you have a capital-forming life insurance policy, your chances of getting a loan are significantly improved. The capital life insurance has a surrender value, which 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 insurance sum serves to secure the loan. A term life insurance policy, on the other hand, cannot be used as a hedge, as it does not represent a countervalue in the event of an event.

Accordingly, pensioners in possession of real estate or endowment insurance should enclose the relevant documents with the loan application!

The possibilities of debt restructuring for seniors

There are two recommended ways for seniors to save money by paying off their loans. The first option is to convert the current loan into a more favorable conventional loan. It is also possible and advisable to combine several small loans, as this not only saves money, but can also give you a better overview, as you only have to pay a single monthly installment instead of many. Debt rescheduling is possible 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 private 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 retirees is that all occupational groups and age groups are eligible. It is only important to describe your debt rescheduling project and your financial situation as well as possible in a description. If enough private investors are then found for the project, the loan is made. Of course, the creditworthiness of the potential borrower is checked by schufa in this case as well.