Remaining Debt: How Can You Minimize it?

One speaks of the remaining debt, when it comes to the end or the termination of a loan. The remaining debt refers to the remaining amount still to be paid to the bank before the contractual relationship has ended.

Depending on the bank, the remaining debt can also be paid in installments or in the form of new financing (follow-up financing ). In the case of early termination of a loan, however, the residual debt is given a special status. It is included in the prepayment penalty calculation and is used to calculate a parameter on the residual debt using a prepayment penalty calculator.

In a nutshell: information on the remaining debt for fast readers

  • The early repayment penalty may not be higher than 1% of the remaining debt if the loan agreement is terminated.
  • If the full repayment of the remaining debt will not take more than one year, the early repayment penalty on termination of the loan agreement may not exceed 0.5% of the remaining debt.
  • A repayment loan allows for a quicker repayment of the remaining debt, as an annual repayment of 10% of the debt is agreed. The repayment loan is associated with relatively high interest rates. An annuity loan, on the other hand, allows repayment of the loan in constant installments.
  • A residual debt insurance is available for the remaining debt if the lender has died, or because of unemployment or incapacity for work can no longer pay the due installments.

What role does the residual debt play in the prepayment penalty?

What role does the residual debt play in the prepayment penalty?


In Germany there are some legal regulations for the uniform calculation of the prepayment date does not exist. For example, the early repayment penalty on termination of the loan before the end of the actual term may not exceed 1 percent of the remaining debt. This fact is ignored by most lenders! Otherwise you can not explain the numerous excessive prepayment penalties. If, according to the actual repayment plan, no more than one year is required for the full repayment of the loan, the prepayment penalty may not exceed 0.5 percent of the remaining debt. You can rely on that at any time. Although this relationship is established by law, not all banks are immediately cooperative with regard to clearing repayment or redemption of the claim. When it comes to repayment claims or the legitimate refusal of a claim for payment, a letter from the lawyer is still more meaningful than a letter from the bank client itself. Would you like to speed up the process of clarifying your credit and are you involved in the case of payment already made? Request for repayment, the commission of the lawyer is the best way.

Prepayment penalty for residual debt

Prepayment penalty for residual debt

The way lenders and borrowers handle the issue of residual debt is reflected in the lender’s goodwill. If the borrower of the installment loan offers a debtor change or a sale of the property encumbered with the loan, it is up to the credit bank to give an adequate answer. This is reflected in a good lender-borrower relationship on the one hand that the lender agrees to the request of the borrower. On the other hand, the positive relationship may show up in the absence of prepayment.
As a general rule, a prepayment right on a loan should be waived if the lender has not incurred any financial loss with the early termination of the loan. Unfortunately, the actual financial loss is not clearly determined by the calculation of the prepayment date. Both the active-asset model and the asset- liability model provide a modeled representation of the loss. Ultimately, it remains in the lender’s hand to withdraw or partially or fully enforce the claim for damages in the form of the overdue facility do. In calculating the prepayment date, the amount of the remaining debt is one of the basics.

What is the difference between an annuity loan and a repayment loan?

What is the difference between an annuity loan and a repayment loan?

In the case of a repayment loan, the bank and the customer agree in the repayment plan to pay once a year 10 percent of the loan amount in effect at that time. The annual repayment makes it possible for the loan to be repaid faster. The price of this financing is reflected in the interest rates. Compared with a loan without repayment, the interest on a repayment loan is significantly higher. From this perspective, the lender can pay for the option of repayment separately. The repayment loan is an option. This means that the Borrower is not obliged to actually pay the capital annually. If there is a premature termination of the loan agreement, the repayment factor must be taken into account separately when calculating the remaining debt. Regular errors are made when calculating the early maturity because the repayment option is only considered until the time of termination or not at all.

The annuity loan, on the other hand, is a loan that pays constant fixed rate installments. Special repayments do not exist.

An annuity loan is designed so that the remaining debt is zero at the end of the loan term. As interest rates decline over time, repayments increase, with rates for credit always remaining constant. The condition of this form of loan is that borrowers and lenders have agreed on a fixed interest rate for the entire duration of the contract. Both forms of loan are special forms of a loan.

Remaining term and residual debt: A pair that influences the prepayment date

Remaining term and residual debt: A pair that influences the prepayment date

The calculation of the prepayment date is influenced by the remaining term and the residual debt. The longer the remaining term of a loan at the time of termination, the higher is the residual debt as a rule. But it must be remembered that, even though the situation is better with market-wide higher interest rates compared to the interest rate at the time of the loan conclusion and the early loan termination should lead to low or no financial disadvantages for the credit bank, the official calculation of the lender to be awaited. The consent to the loan termination remains with the bank providing credit. If you do not plan to switch to another lender, you can facilitate the acceptance of the loan cancellation by announcing notice of termination in the medium term or in the long term to sign a new loan agreement.

Information about the residual debt insurance in relation to the prepayment penalty

Information about the residual debt insurance in relation to the prepayment penalty

The residual debt insurance is used when borrowers want to hedge against death, unemployment or sickness or disability. Due to the long installment loan term over a period of 10 years, the residual debt insurance is mainly used for such loan agreements. As a consequence of a residual debt insurance settlement, a commission may be due to the credit intermediary or the bank. Furthermore, the interest rate can be significantly higher than the interest on a loan agreement without residual debt insurance. If the lender requires the conclusion of a residual debt insurance, the fulfillment by the borrower must be recognizable in the effective interest rate. In this case, the conclusion of the residual debt insurance leads to consistent to better loan terms.

These reasons speak for the early replacement of a loan:

  • The new conclusion of a loan offers significantly better loan terms
  • Compared with the 1 percent or 0.5 percent remaining debt settlement, the payment of the prepayment date is more favorable
  • The real estate financing must be dissolved as there is a change of the real estate owner
  • The borrower wants to raise a higher loan and the lender refuses
  • The borrower has died and left an inheritance, with the remaining debt and prepayment being settled

What to do if the prepayment penalty is higher than the residual interest?

What to do if the prepayment penalty is higher than the residual interest?

When calculating prepayment for a loan, it is not only the residual interest that influences it. Because in addition to the planned and paid by loan cancellation no longer according to the agreed repayment plan remaining interest amounts, the lending bank incur further costs. These are reflected, inter alia, in the processing fees and the loss of new investment or reallocation of the money in the form of a loan. Since the exact calculation of the prepayment date is not exactly regulated by the German legislator, each credit institution sets its own priorities in the place of the damage description. It is again reminiscent of the 1 percent or 0.5 percent remainder, so it becomes clear:

Banks can not extend the claim for damages in the form of the prepayment request without restriction.

If you have already submitted a loan cancellation for your installment loan, do not transfer the prepayment date without having the prepayment and residual debt calculation and cancellation policy checked in the loan agreement. With a bit of luck, your loan agreement contains a faulty cancellation policy, invalidating the prepayment request. Almost 60 percent of all loan agreements issued in the last two decades have a faulty cancellation policy. To date, more than half of the faulty cancellation policies have gone undetected and countless euros have been paid and not recovered by the borrower, although this is possible. You can get back the prepayment penalty in case of an error in the cancellation policy. If you have terminated a loan agreement in the past, you should also submit it to the capital law attorney to verify that partial or full reimbursement of the prepayment date is possible.

What options are there to calculate the remaining debt?

What options are there to calculate the remaining debt?

Take advantage of this opportunity and make use of free prepayment prepayment. You can use our prepayment penalty calculator for this. Enter contract-relevant data such as the tied interest rate, installment amount, frequency of installment, contract duration. In a few seconds, the calculation of the prepayment date is completed. The result of the prepayment penalty calculator corresponds to the potential prepayment request of the lender. If you would like to work with an expert right from the start, contact the specialist lawyer. He will calculate the remaining debt and plan the further course of action with you, for example a follow-up financing. If you have a good relationship with your bank adviser, you can ask him to calculate the remaining debt and the due date. In most cases, the calculations then provided are non-binding statements that can only be used retroactively to clarify an excessive prepayment date.

Termination for residual debts by the bank

Termination for residual debts by the bank

An awakening is available to all borrowers whose loans have been terminated by the credit bank. In this case, the legislator stipulates that the borrower as well as the lender are entitled to the early repayment penalty. In this case, it is worthwhile to establish contact with the specialist lawyer and have the loan agreement and the termination by the lender checked. If you can assert the right to a prepayment, you can expect a four to five-digit prepayment penalty depending on the term of the loan agreement at the time of termination. The process from the customer’s point of view is referred to as a claim for damages after termination of the loan agreement by the lender.

The prepayment penalty may not exceed 1 percent or 0.5 percent of the remaining debt

The prepayment penalty may not exceed 1 percent or 0.5 percent of the remaining debt

Compute residual debt is worth it if you do not want to unnecessarily pay too high compensation. The Prepayment Compensation Calculator offers a free and fast way to calculate the appropriate amount. With the help of the prepayment calculation and the rules of thumb, the payment of excessive receivables can be prevented, or an effective rescheduling or follow-up financing can be initiated.

The rules of thumb for residual debt state that the prepayment date may not exceed 1 percent or 0.5 percent of the remaining debt in the case of a foreseeable loan repayment under one year.

Get support from the specialist lawyer for capital law

Get support from the specialist lawyer for capital law

A specialist lawyer for capital law is familiar with topics such as prepayment, residual debt, interest, installment, repayment plan and annuity loan. This background knowledge makes it possible to bring a loan agreement to a good, premature end, without having to accept an excessive or unlawful claim for prepayment by the loan bank. After you have calculated the prepayment date with the prepayment penalty calculator, all relevant facts are in front of you. According to your determination and time, now has the right moment to contact the lawyer. The lawyer will examine the loan agreement according to applicable law, calculate the remaining debt and show you the possibilities. Due to many individual case decisions on the subject of maturity, debt restructuring and residual debt, the expertise and skills of the lawyer should never be underestimated. Depending on the lender, the borrower and the amount of the remaining debt, the involvement of a lawyer can save a five-figure amount of money.

Not every mortgage lending comes to a happy end

Not every mortgage lending comes to a happy end

The completion of mortgage lending is usually associated with hopes and confidence in the future. The awakening comes at the latest when it comes to the intention to terminate the loan agreement and the bank makes use of its right of early repayment penalty. To ensure that the once-for-home loan, and in the best case your own benefit, remains positive, termination before the end of the term is sometimes the only way. Do not stay out of convenience in an existing loan relationship.

Checking past and current loan agreements is worthwhile

Checking past and current loan agreements is worthwhile

Make use of the contact with the specialist lawyer for capital law and have a current prepayment claim checked as well as an already paid prepayment claim. Do not give up the chance to get an amount in three, four or even five-digit amount issued or refunded. If the consultancy costs for the lawyer are not covered by your legal expenses insurance, it is worthwhile to entrust the lawyer anyway if you have the prospect of repayment or remission success. In addition, a loan agreement should always be checked for the correctness of the prepayment date before a prepayment date. Alternatively to the specialist lawyer you can get support from a regional consumer protection. As soon as the situation between you and the lender intensifies, the contact with the specialist lawyer should be established. Calculating the residual debt can be complicated, but a professional knows best what to do. You should also inform yourself about the so-called follow- up financing in order to get your loan back into order. Rescheduling can also be an alternative.

Debt settlement loan – matching offer – low monthly installments

Debt compensation can be done quickly and easily, or it can be like an odyssey. Each individual case is different.

In the text, we will discuss the problem cases and solutions for you. In addition, we provide you with a strong partner through the comparison software.

For fast readers – key points

  • Each individual case requires differentiated solutions
  • You can use the comparison software to check for yourself which loan offers fit your individual case
  • Please make your credit application now – without obligation
  • The software uses your data in real time to get the right credit

Debt Settlement Credit – Introduction

Debt Compensation Loan – Debt Restructuring

Almost 10 percent of adults in Germany have such high debts that they can not be cleared without outside help. A pretty scary number, considering that this is just the tip of the iceberg and that the number of debtors keeps increasing.

One of the causes of this is our consumer society and the opportunities that result. Not only that there are goods available on every corner, of which we only need a very small part to be able to live and work properly.

It is also bad that these goods can be easily financed, because everywhere you can find credit offers that make this possible. Considering then that hardly anyone can rest in a secure workplace with a secure income, everyone should understand why so many consumers are in debt or even over-indebted.

Debt Balancing Debt – Fighting Debts

Debt Balancing Debt - Fighting Debts

An escape from the debt succeeds only if they are recognized and combated in time. Many consumers try to get the debt under control with the aid of installment payments agreements with the creditors.

However, this succeeds in most cases, not because the creditors want to have their money as soon as possible, therefore, no small installments allow and also like once ordinary default interest on the outstanding amounts. Those who then have more creditors, the high sum that would have to be applied in a installment payment agreement, usually can not cope.

For this reason, this path should not be taken, because it only costs a lot of time and nerves. It is better to think in good time about a loan for debt settlement.

This is available in the form of an installment loan whenever the creditworthiness of the borrower allows for borrowing.

When does the credit fit?

When does the credit fit?

The creditworthiness of a debt-equalization loan always fits when there is a fixed income and a positive shape. Since debt can quickly be negatively reflected in the private credit, it is important that the debt-equalization loan be swiftly absorbed so as not to unnecessarily complicate borrowing.

We recommend that you become active at the first sign of over-indebtedness. It is important that there are still no payment defaults and the creditors have not yet applied for a reminder or enforcement order.

Once this has happened, the chances of a good loan are very bad.

Step by step – Credit for Debt Settlement

For the inclusion of the debt equalization loan, it is important that the total debt is determined. It pays to write down all creditors and ask what the outstanding debt is.

It is important that all outstanding liabilities are recorded. Even if they are very small.

Because in the end there should only be one big creditor – the bank – with whom one can then make a meaningful and realizable installment payment agreement. Once the total debt has been determined, you must look for suitable offers.

A loan calculator on the internet helps to select suitable loan offers. If the credit rating weakens a bit, it is worthwhile to consult a guarantor for borrowing.

In addition, the debt settlement loan should be chosen so that repayment can be made flexible to avoid further financial problems.


Anyone who seeks to balance their debts should, in return, refrain from making further debts. It is important that once all debt can be eliminated, so that a restart in economic terms is possible.

However, if you make debts at the same time, you can save yourself the search for a suitable loan, because it is not worth recording.

Debt Consolidation: Reunify credits in the mortgage, a complex decision

On many occasions the reader will have heard terms such as debt reunification or unify loans. It is a tool in the form of different financial products that, due to the growth of the over-indebtedness of Spanish families, have gained considerable validity in recent years.

There is no single model of debt reunification or unification of loans. We will see below two of the most extended modalities ; the reunification credits or the unification processes in already existing products.

Why is it better to buy what to rent? in this post we give you the keys

Reunification credit

As its name suggests, it is a new credit product that aims to group the user’s financing debts into a single product with a single quota. Generally, in its purest version, this type of product does not include mortgage loans, it is exclusively coverage for personal financing or consumption.

These are not particularly cheap loans, generally their potential lies in being able to combine several debts into one and give a longer repayment period, so that although the final result is more expensive than the partial debt, the monthly installments they are reduced significantly.

However, the idea has been extended that certain (new) mortgages that admit to include in the total financing the amounts destined to settle other loans of the user are also reunification credits, something that does not correspond with the reality. These cases tend to have a large final cost on the amounts financed, which, although they appear as a short-term option, are a very bad long-term choice.

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Unify debt on existing products

In spite of what the publicity can say, really before a need to unify debt the best way before going to products with external credits to financial institutions (the most common) is to try to start a negotiation with the entity where We have more volume of debt.

Regardless of the personal image we have of the entities, the truth is that they do not want to accumulate defaulters at all, and therefore, keep open the possibilities of negotiation on debts. It is evident that good deals can not be obtained in all cases, however, the possibility of refinancing debt by loans is much simpler and cheaper in this case than in the products of debt reunification. Likewise, the possibility of negotiating the mortgage loan usually translates into greater advantages than the specific products mentioned above.



Over-indebtedness: how to avoid it

In times of economic difficulty, the risk of not being able to pay the mortgage or loan installments in progress becomes more present, especially if the economic conditions of departure of those who requested the loan change or if there are more credit lines activated. In 2000, according to Federconsumatori data, over-indebted households in Italy were 0.9%; in 2012 they became 5%.

The biggest problems for consumers are related to being entrusted to several financial institutions for loans in progress and not being aware of the charges they are required to pay (for example, interest rates). The result is an increasing difficulty in payment of installments, the impossibility of repaying them in due time and the registration of delays in SIC (credit information systems). When we deal with debt collection companies, the situation can become even more complicated: the Anti-Wear Surgery has recorded a 20% increase in requests for help in 2013 compared to 2012, with a growing trend.

So how do we not get to this point? First of all it is necessary to thoroughly analyze its economic situation before considering the hypothesis of a financing : evaluating the income and the expenses allows to understand if it is sustainable the repayment of a monthly payment and of what maximum amount.

The second step, just as important, is to be carefully informed and not to trust the first offer that is found: it is therefore necessary to read the pre-contractual information and the financing contracts, verifying that all the information required by law is present.

If, on the other hand, we have already contracted loans that we are struggling to repay, we can control the margins of renegotiation of the loan with the bank. To keep track of your debt and to manage it in a sustainable manner for our finances, we can also turn to tools such as Mettinconto, which allows us to monitor our situation and analyze our creditworthiness with dedicated advice.

14,000 Euros Online Loan


 A € 14000 loan is an installment loan that is also offered online by various banks.

Online loans are usually cheaper than loans from branch banks, since direct banks consistently save costs and can offer their banking products so cheaper. Anyone interested in a € 14000 loan should make a loan comparison before borrowing.

An online loan comparison of 14000 euro loans is time-saving and can be done comfortably from home. The following three banks offer a favorable monthly installment for a 14000 Euro loan.

Although Camibank is not a purely online bank – Camibank also maintains some branches – but on the bank’s website, prospective creditors also find a loan offer for an online loan. If you decide on a loan amount of 14,000 euros and a term of 48 months, the Camibank will pay a monthly installment of 317.41 euros. The annual percentage rate for Camibank is between 4.29% and 10.99%. The interest rate on the Camibank depends on three factors. For example, the loan amount, the term and the creditworthiness of the applicant are taken into account when setting the interest. This also results in the different interest rates. If you want to use a 14000 euro loan, then you should definitely make a personal offer at the Camibank.

CreditOnline also offers loans for different loan amounts and terms. If you decide for a 14000 euro loan with this provider and you want to repay the loan within 48 months, so here monthly 317.77 euros are due. The annual interest rate for the CreditOnline loan is between 4.35% and 10.90%. Again, the interest rate is calculated depending on credit rating.

Europe Creditors Bank is the third cheapest provider in this credit comparison with a monthly installment of € 318.08. Here, too, a loan amount of 14,000 euros and a term of 48 months were used. The annual percentage rate is between 4.40% and 11.95%. The interest rates will also be assigned to Europe Creditors Bank on a credit rating basis.

The 14000 euro credit of the above banks is not earmarked and can therefore be used as desired. A loan of 14,000 euros is suitable, for example, for a car purchase, a renovation or rescheduling of another loan.

Who can apply for an online loan?

Who can apply for an online loan?

Banks target their online loan offerings primarily to employees. In order to minimize the risk of default, applicants who are in fixed employment outside the probationary period are preferred. If you want to apply for a 14000 Euro loan, you should be at least 18 years old and have your permanent residence in Germany.

A positive private credit information is also a condition for a 14000 euro loan. To prove all this, applicants must submit appropriate evidence to the bank. For the business use such a personal loan is usually not provided. Self-employed and freelancers can not take advantage of many online loan offerings because they are excluded from lending from the outset. On the other hand, workers with a sufficiently high income and impeccable private credit have a good chance of getting a loan of 14,000 euros.