Debt restructuring for civil servants

A debt rescheduling for civil servants can usually be carried out without major problems. One of the main reasons for this is that the income of most civil servants is not only very secure but also sufficiently high. If the credit bureau information is still in order, nothing stands in the way of lending. More exposition at

Debt relief for civil servants – use civil servant loans

Debt relief for civil servants - use civil servant loans

Official loans lend themselves very well to debt restructuring. Their term is very long at 10 to 20 years, the interest rates are low and the combination with a life insurance policy ensures that only very low monthly installments have to be paid throughout the term. However, these installments are by no means repayments, but only the regular contributions to the life insurance that is used to repay the civil servant’s loan at the end of the term.

Taking out a civil servant loan makes sense in particular if old loans with comparable high interest rates still exist from a time when civil servant status was not yet available. Under certain conditions, a civil servant loan can also be drawn on by long-term civil servants or well-paid academics. Each bank or insurance company that offers a civil servant loan determines whether and to what extent this is possible.

Debt restructuring for civil servants – installment or consumer loans

Debt restructuring for civil servants - installment or consumer loans

Of course, civil servants are also free to apply for a normal installment or consumer loan from a bank of their choice and to use this loan for debt restructuring for civil servants. However, the pros and cons should be carefully weighed against each other. Installment loans are primarily suitable for people who only have to repay small amounts of money or want to balance the overdraft facility in their checking account. The principle that civil servants can receive particularly favorable conditions for this also applies to installment loans. A comparison on the Internet or a personal conversation with a bank advisor could provide more information.

When rescheduling for civil servants, however, it would be advisable not to rely solely on the offers of the house bank, but always to consider several options. Once the right installment loan has been found, it could also be applied for on the Internet. This applies even if the bank in question has a dense network of branches throughout Germany. The question of whether there are any costs for debt restructuring plays a very important role when applying for new loans.

Many banks are entitled to demand early repayment compensation for the early termination of a loan agreement. This prepayment penalty should be offset against the possible interest savings for the new loan. If this still results in cost savings, rescheduling makes sense for civil servants in the vast majority of cases.