A Loan Consolidation can make sense for a borrower to replace already existing loans and credits and to obtain better conditions in the future. Often the borrower receives economic advantages through this debt restructuring and can thus save a lot of money (especially in the form of lower loan interest rates).
For this purpose, the old loans are redeemed (this is possible without bureaucracy) and combined into a new consumer loan. The Swiss Consumer Credit Act (KKG) simplifies the redemption or merging of loans by allowing the borrower to redeem a current loan at any time without costs.
A credit increase is also possible in the course of this combination.