Understanding the Benefits and Considerations of Debt Restructuring

Life in Germany has become significantly more expensive in the past two years. How stressful the high cost of living is for many people at the moment can also be seen in a recent study representative survey by the market and opinion research institute Civey on behalf of the credit brokerage portal Smava. Accordingly, 8.5 percent of Germans had their checking account in the overdraft in September 2023. The currently very high interest rates represent a further difficulty, because those who have an overdraft will pay an average of “around 12 percent interest” in October 2023, as Stiftung Warentest reports. A significant increase is clearly visible, because in last year The overdraft interest was still on average 9.43 percent.

In view of this, many loan providers present debt restructuring on more favorable terms as a solution. One or more loans are combined with another loan with better conditions, such as lower interest rates. But is debt restructuring really worth it? Business Insider asked debt counselor Roman Schlag about the topic. The expert reveals in which cases debt restructuring makes sense, what you should keep in mind – and when you should choose alternative solutions.

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