An old saying goes that those who have high debts are no longer free. Much of your own financial opportunities are tied up and are no longer available to make important purchases. Creditworthiness suffers, which is why it is almost impossible to get a loan despite high debts. However, there are ways to get this loan anyway.
The loan despite high debts and the credit limit
High debts are an elastic term and are subject to individual feelings. Some people may feel that 1000 dollars are high debts, others only speak of high debts from 100,000 dollars. The credit limit is interesting for a new loan despite high debts. This describes the value from which your own loan repayment ability is no longer sufficient to receive a new loan due to the existing debts. Specifically, this means that there must be enough money left over from the monthly net income after deducting the essential costs and the credit refinancing costs in order to also pay the installments for the new loan. If this is not the case, however, a guarantor or a second applicant can help you get a loan despite high debts.
Always possible: debt restructuring
Despite high debts, a loan is actually always possible if it serves to carry out debt restructuring. The idea behind it is: If you find a loan that is cheaper than the loan that you currently have, it makes sense to take it up so that you can replace the old loan and pay less money from now on. The legal framework for debt rescheduling is the right to prepayment or special repayment (the partial repayment of the loans). However, you have to be careful: the bank where you make the repayment can take a fee. Despite this fee, debt restructuring must remain cheaper, otherwise it will lose its added value and become pointless. A simple sentence can help: In the end, a debt restructuring must always be a partial debt relief.