Financial test: debt repayment can save money


Berlin – Who pays a installment loan, should think about a rescheduling. Because of the currently low interest rates consumers can potentially save a lot of money, explains the Stiftung Warentest in the journal “Finanztest” (issue 2/2014). The higher the residual debt and the original interest rate, the more borrowers benefit from the currently low interest rates.

Picture: Zero provision 

Two examples: A consumer took out a loan of 10,000 euros three years ago at an interest rate of 8.9 percent. The term is six years. If a new loan with 5 percent interest is taken and the old loan is replaced, the consumer saves 278 Euro. With a loan amount of 20,000 euros, the interest savings by rescheduling even 556 euros. A prepayment penalty of 1 percent of the remaining debt was taken into account in the examples.


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