Loan Consolidation
A Loan Consolidation means replacing already existing loans and refinancing them with a new loan. This can make sense for a borrower not only in order to keep better track of running contracts. Often this debt restructuring is economically advantageous and can thus save a lot of money (especially in the form of lower loan interest rates).
For this purpose, the old loans are repaid (this is possible without much paperwork) and combined into one new personal loan. The Swiss Consumer Credit Act (KKG) simplifies this process by allowing the borrower to repay a current loan at any time without costs.
Increasing the loan amount with a top-up is also possible in the course of a consolidation.