A debt rescheduling is generally suitable for combining several loans into a single package and thereby paying only a monthly installment, which can usually also be lower than the various installments combined. Since lenders’ officials are welcome customers, special loans are also given on favorable terms. This makes debt restructuring for civil servants very interesting. See http://www.horsebackarcherygr.com/easy-car-loans-for-bad-credit-apply-for-car-loan-online-with-bad-credit/ for a write-up
Advantages of a loan for civil servants
An official loan is only granted by lenders to civil servants, civil servants and academics. Due to the secured income, the civil servant belongs to the safe profession, which makes it a very seen customer for lenders. The loans for civil servants are particularly characterized by the fact that they offer a lower interest rate and a longer term. This makes debt restructuring a good solution for civil servants if the monthly financial burden is to be reduced.
Existing loans can be summarized in this way and the rate is reduced. This also makes the financial situation clearer for the person concerned. In addition, a civil servant loan is usually linked to a life insurance policy, which offers additional security. In the event of the borrower’s death, the heirs are not liable, but the remaining amount is covered by life insurance.
Preparation for debt restructuring
First, it is important to take a close look at your own financial situation. A comparison of the income and expenditure helps to get an overview. Loan contracts that are at the end of the agreed term can easily be rescheduled because they are free again and the repayment of the remaining loan amount can be renegotiated. With contracts that have a longer term, things look a little different. Negotiations with the lender are necessary here, as the lender can request prepayment penalty if the loan is to be paid off prematurely.
As a rule, it therefore makes sense to seek debt restructuring for civil servants at the previous credit institution. Most of them are willing to forego prepayment penalties because a new contract is concluded. However, you should not refrain from obtaining other offers. This is the only way to find the optimal solution for debt restructuring for civil servants. Other offers also offer a good basis for negotiations with the house bank.