Time and again people come into a financial situation in which a second loan seems necessary. These situations are not uncommon. If, for example, it is considered that each installment purchase from a furniture store or an electronics retailer also represents a loan, the idea of two or more loans running at the same time no longer sounds so unusual. The situation is similar if a property purchase was financed by a loan and a loan for a vehicle is added later.
In 2015, around 6.72 million people in Germany were in debt, with the average debt amount according to the 2015 Debtor Atlas was $ 34,000. Certainly among these debtors are people who have to service more than one loan at the same time.
With two loans, the comparison is worth twice
Dealers or the house bank do not always offer the best conditions for consumer, motor vehicle or real estate loans. Against this background, the quick and easy comparison of different loan offers on the Internet is of course worthwhile in several ways. If you are not afraid of the effort and time, you can easily find the best conditions for yourself on the Internet at providers of loan comparisons.
But be careful: it is extremely advisable to compare credit terms, but it is important to note that most German banks report credit requests from their customers to credit record. An above-average increase in the number of credit inquiries made by a person (from 3 to 5 inquiries in a short time) has a negative impact on their credit record score!
Does a second loan always make sense?
Especially with small consumer loans, it is advisable for the debtors to be careful. Not only is the overview of the monthly installments quickly lost as the number of small loans increases, the conditions can also be significantly more expensive than with a larger loan that brings all debts under one roof. The issue of debt restructuring is worth mentioning here. Debt restructuring means the replacement of one or more old loans with a new loan. If, for example, a debtor has five loans (once $ 200, once $ 285, once $ 415, once $ 470 and once $ 630), a loan of $ 2000 could be taken out, with which all other loans at one go be repaid. From now on, the credit situation is much clearer and in many cases cash is also saved. The same applies here again.
Top-up a loan instead of a new loan
Another financing option is the expansion of existing credit. If repayment installments and interest have always been paid for the current loan in accordance with the contract, in most cases there is nothing standing in the way of an increase in the loan amount by the lending bank. So instead of taking out a second small consumer loan, there is an option here. The overview is retained and fresh money is still available to the borrower.
Sharing loan amounts can also be beneficial
Right now, in the low-interest phase, the splitting of loan amounts can make sense. If, for example, a large amount of money is required to finance a property, splitting can ensure that there is a high repayment of the loan amount at the beginning, but that the interest is also tied up for a long time. Under certain circumstances, the splitting can result in the best conditions for the new property owners.