Is debt restructuring realistically possible despite Credit Bureau entry or will there be problems? Debt consumers often ask themselves these and similar questions. But as is so often the case with loans, there is no general answer to these questions. A debt rescheduling despite Credit Bureau entry is always possible if the lender has a special interest in getting his money back.
That would be a so-called debt restructuring despite Credit Bureau with the original lender. In practice, debt rescheduling occurs relatively often in connection with mortgage lending if it has to be rescheduled after the first round of financing. The previous lender will agree to the debt restructuring despite the poor borrower of the borrower if the borrower has paid his installments consistently as agreed in the past. The decision of the banks for a debt restructuring despite Credit Bureau would also be similar if it was a car loan or a cash loan. Basically, however, it is always individual decisions that cannot be generalized.
When debt restructuring makes sense
When and why should debt restructuring be worthwhile and sensible at all? Quite a few consumers have spontaneously taken out several loans over the course of time to buy, travel or build a consumer goods of various kinds. Then suddenly the financial situation changes completely unexpectedly. Unemployment, separation from a partner or a long and serious illness are the most common reasons that suddenly make borrowers unable to pay their installments.
If borrowers find that they cannot pay their installments at the previous level, they should do something about it. First of all, it makes sense to replace existing obligations and combine them in a new loan. By choosing a long loan term, borrowers can stretch the monthly charge so that it is affordable again. If in the meantime a negative Credit Bureau entry is the result of unpaid bills or installments, it is not always easy to get through a debt restructuring despite bad Credit Bureau. However, our practical experience shows that many banks ultimately end up cooperating in order to find solutions to the existing payment problems together with the borrower.
It usually gets really complicated when a new lender is faced with debt restructuring despite Credit Bureau. Banks that do not know the customer are also usually not willing to buy the additional default risk. Borrowers with poor Credit Bureau have rather bad cards in such attempts. The debt restructuring is very likely to be rejected.
Secure the debt rescheduling loan with a solvent guarantee
Rescheduling despite Credit Bureau entry is also possible with a new lender if the loan applicant can provide a solvent guarantee. As soon as a good guarantor wants to sign the contract, the situation changes. The bank will agree to a debt rescheduling despite the negative Credit Bureau if it can park the loan on the guarantor. He then has to sign a jointly and severally guaranteed declaration. This guarantee can also have negative consequences for the guarantor.
The loan that he guarantees is considered by potential lenders as a contingent liability. This can cause problems if a guarantor later wants to take out loans himself. In addition, the joint and several guarantee means that the bank is entitled to immediately claim the guarantor in the event of payment arrears. Anyone taking out a guarantee to enable a borrower with a negative Credit Bureau to take out a new loan should be fully aware of the existing risks.