Debt Consolidation
Loan
Stuck in the Dispo trap paying 12% interest? Consolidate your debts into one lower-interest loan. Save money and simplify your finances with Umschuldung.
Compare Consolidation Loan Offers
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How Much Can You Save?
Before: Multiple High-Interest Debts
| Overdraft (Dispo) | 3,000 | 12% APR |
| Credit Card Balance | 2,000 | 18% APR |
| Old Personal Loan | 5,000 | 9% APR |
| Total Debt | 10,000 | ~12% avg |
After: One Consolidation Loan
| Single Installment Loan | 10,000 | 5% APR |
| Interest Savings (48 months) | ~1,400 | |
The Dispo Trap
Many expats fall into the Dispo (overdraft) trap because its easy to access. But at 10-14% interest, it is one of the most expensive forms of credit. Consolidating into an installment loan at 4-6% can save you significant money.
How Debt Consolidation Works
Calculate Total Debt
Add up all your current debts: overdraft, credit cards, existing loans
Apply for New Loan
Get a consolidation loan (Umschuldungskredit) for the total amount at lower rate
Pay Off Old Debts
Use the new loan to pay off all existing debts. Now you have one payment.
Benefits of Consolidation
Lower Interest Rate
Installment loans typically have much lower rates (3-7%) than overdrafts (10-14%) or credit cards (15-20%).
One Monthly Payment
Instead of managing multiple payments to different creditors, you have one fixed monthly amount.
Fixed End Date
Unlike revolving credit, you know exactly when you will be debt-free. Clear timeline for financial planning.
Potential Schufa Improvement
Replacing revolving debt with installment credit can positively impact your Schufa score over time.