Debt Consolidation: Pay Off Existing Loans and Improve Terms
When Is Debt Consolidation Worth It?
Most people think about refinancing their loan too late. Yet there are several clear situations where a second look at your existing loan pays off.
The interest rate is too high. Current debt consolidation rates range between 4.9% and 9.95%. If you took out your loan a few years ago, you may have paid significantly more back then. A difference of even one to two percentage points can already make refinancing worthwhile, and checking costs you nothing.
Your situation has improved. Did you get a raise, pay down debt, or land a permanent job? Better creditworthiness often means lower interest rates, and refinancing gets you what you're entitled to today.
Several loans are burdening you. Instead of several installments to several banks, you pay a single installment. This simplifies your finances, and often the terms are better than the average of your previous loans. More on this in the guide on consolidating debts.
The monthly installment is squeezing you. With a longer term, the installment drops, but the total costs rise, because you pay interest for longer. It's about finding the balance that fits your situation. That's exactly what we support you with as a broker: we compare for you, instead of you asking your way through bank after bank and unnecessarily leaving traces in your creditworthiness.
What Debt Consolidation Through privatkredit.ch Brings You
Requirements for Debt Consolidation
The same basic requirements apply to a loan refinancing through privatkredit.ch as to any loan application in Switzerland. We additionally need the key details of your existing loan.
How Debt Consolidation Works in 4 Steps
Check your old loan
Determine your remaining debt based on your latest loan statement or with a call to your bank. Note the effective annual interest rate, the remaining term and the monthly installment.
Calculate savings potential
Enter the payoff amount and new term into the loan calculator and see your possible savings in seconds, free of charge and without affecting your ZEK entry.
Submit application
Fill out the online form, select "debt consolidation" and enter the payoff amount and previous bank. We forward your request to matching Swiss banks, and you receive several offers to compare within 24 hours.
New bank pays off the old loan
After signing the contract and the 14-day withdrawal period under Art. 16 CCA has passed, the new bank transfers the payoff amount directly to your previous lender. You don't need to do anything further.
Debt Consolidation: Terms in Market Comparison
Current debt consolidation rates range between 4.9% and 9.95%, depending on provider type and creditworthiness. Through privatkredit.ch you see several matching offers at once, instead of inquiring at each bank yourself.
| Provider Type | Eff. Annual Interest | Terms | Special Feature |
|---|---|---|---|
| Online bank | 4.9% - 7.9% | 12-84 months | Digital, fast processing |
| Cantonal bank | 4.9% - 8.5% | 12-72 months | Personal advice |
| Credit bank | 5.5% - 9.95% | 12-84 months | Also for medium creditworthiness |
The effective annual interest rate, not the nominal rate, is always what counts for the comparison, since only the effective rate includes all costs. Comparison basis: representative values, as of July 2026, varies depending on creditworthiness, income and term.
What Debt Consolidation Actually Costs
No early repayment penalty
Under Art. 17 CCA, Swiss lenders may not charge a penalty fee for early payoff of consumer loans. You only pay interest up to the payoff date.
No hidden fees at privatkredit.ch
The inquiry and comparison through privatkredit.ch are free of charge, no brokerage fees apply.
Mind the withdrawal period
For loans up to CHF 80'000, a 14-day withdrawal period applies under Art. 16 CCA. Only after it has passed does the new bank transfer the payoff amount to the previous lender, the full process usually takes a few business days after that.
Frequently Asked Questions About Debt Consolidation
- Autor
- privatkredit.ch Editorial Team, Specialist Editorial Team for Loans & Financing
- Fachliche Prüfung
- Redaktionsinterne Gegenprüfung durch Kreditfachleute
- Zuletzt aktualisiert
- July 7, 2026, Inhalte werden laufend aktualisiert
- Unabhängigkeit
- Unabhängige Recherche, ausschliesslich offizielle Schweizer Quellen
- 1Swiss Consumer Credit Act (CCA/KKG), Fedlex. fedlex.admin.ch/eli/cc/2002/593/de
- 2ZEK - Central Office for Credit Information. zek.ch
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