Loan and debt consolidation

I am thinking of consolidating my credit with high interest into one large one with lower interest but have no experience of doing this... would be grateful of any advice.

Do they only consolidate credit from other known financial institutions? Or can you also pay off lawyers/doctors bills?

Does it make sense to include debt from a lawyer for consolidation? Would this give them too much info and make me seem a greater risk? (As far as I am aware, when the debt was sent to a lawyer, it shouldn't have informed SCHUFA).

What is the difference between taking a loan to "officially" consolidate existing debt through the bank and applying for a normal loan and paying off the debt yourself?

Anyone have inside knowledge of how to increase chances of getting a loan in Germany?

Does the current economic climate in Germany make a difference to the chances of individuals getting loans?

Should I do a check with my local SCHUFA office before applying?

Any recommendations on the best institutions for approx. EUR 15000 over 60 months (have already searched the net for comparisons but dunno if there are other offers that are not easily found).

Would it make more sense to split EUR 15000 over 2 separate loans for lower interest rates? What are the chances of getting acceptance for 2 loans at the same time? (or should I leave some time in between applications?)

Thanks in advance...

No. Germany is the richest country in Europe. It is the biggest exporter in the world. The banks can lend billions if they wish.

The economy has shitloads of money, just higher than desirable unemployment, and a negative consumer population.

However your own "economic climate" might make a difference to the chance of getting a loan, but it will have nothing to do with the economy as a whole.

the bank loves giving you loans
i was something like 30k€ in debt a few years ago, and the bank just *adored* me when i went in and said i wanted to convert the whole kit and caboodle to a loan and pay it off monthly
i asked them to give me a lower overdraft limit and they didn't bother - probably secretly hoping that i'd get into more debt, no doubt

Firstly, congratulations for getting into debt in Germany, that's quite an achievement.

Regarding the lawyer debt, that depends on whether you are paying interest on the debt and, if so, how much. If the interest rate that you are paying on that debt is higher than the interest rate of your loan, then it makes sense to pay it off using the loan. If the interest rate is lower or you aren't paying any interest at all, then don't pay it off with the loan -- it will only increase your total repayments.

Generally speaking, the larger the loan the lower the interest rate, so it is very unlikely that splitting the debt over two loans will reduce your repayments.

That's about all I can help you with.

nah, it's easy-peasy

Just be sure to make your calculations on current payments compared to any 'new' consolidation and weigh the risks. Debt consolidation may even cost you more.

As was already pointed out, it is not really difficult to get into debt anywhere... No need for congratulations really!


You misunderstood my question... I know that the consolidation loan has to have a lower interest rate, but I need to know if I should include the debt from the lawyer in the consolidation as it sounds worse when it has been passed to a lawyer and wondered if it will reduce my chances of getting a loan... (he told me that he has not contacted SCHUFA).

I thought that by taking out a smaller loan, you could get a lower interest rate. That is why I wondered if it makes sense to take 2 smaller loans at smaller interest rates than a large one with a larger rate... Don't know if it makes much difference...

I'm not sure how bothered the bank would be about you having debts with a consolidation lawyer. If it is an issue, walk out and go next door before you apply -- there are enough banks out there. If it's only a small proportion of the total loan amount, then you don't even need to mention it. In general, the banks are more concerned about whether you can repay that loan, so your income and length of time with your current employer will be greater considerations than precisely what the loan is for (as far as unsecured loans go, anyway).

Regarding the interest rates, smaller loans generally incur higher interest rates. This has recently been discussed here: Getting a loan in Germany.

Let us know how you get on!