Debt consolidation
Debt consolidation in Switzerland: one instalment instead of several
A car lease, a credit card balance, a small loan for the furniture. Each payment on its own is fine. Together they eat into your month. A new loan can combine your existing instalments into one, often at a lower rate.
Consolidation calculator
What could change each month?
Enter what you still owe and what you pay today. The calculator shows the new instalment and the difference.
Refinancing calculator
Add up all loans, leases and credit card debts.
Please enter a remaining balance of at least CHF 1'000.
Calculated at 4.95 to 9.95 % annual interest. A longer term makes the instalment smaller but costs more interest.
When it makes sense
Combining loans works best if you
- pay more than one loan, lease or credit card balance at the moment,
- pay a higher rate on an older loan than you would need to today,
- carry a balance on your credit card, where interest is often around 12%,
- want one date, one amount and a clear end date for your payments.
What to watch out for
- Look at the total, not only the instalment. A longer term makes the instalment smaller but can cost more interest overall.
- Ending a lease early can cost something. Ask the leasing company for a settlement figure before you decide.
- Keep the cards at zero. Consolidation only helps if the credit cards you paid off stay paid off.
- Early repayment is your right. You may repay a consumer loan early at any time (Art. 17 KKG). Interest for the remaining months falls away.
A typical case
Think of a family in Zug. The car is leased, the credit card carries a balance from the last holiday, and a tax bill has arrived after the switch from withholding tax to ordinary assessment. Three payments, three due dates. After consolidation they have one instalment and know exactly when it ends.
Whether that works depends on the budget. The bank must check that the new, larger loan is affordable (Art. 28 KKG). The budget check gives you a first idea.
How it works
You list every open loan, lease and card balance with the amount still owed and the monthly payment. In the request form you choose “debt consolidation” as the purpose. If a bank makes an offer, it pays off your old contracts directly after the 14 day withdrawal period. From then on you pay one instalment. Want to compare the new instalment first? Use the loan calculator.
Questions
About debt consolidation
Can I include my car lease?
Often yes. Whether it pays off depends on what ending the lease early costs. Ask the leasing company for a settlement figure and compare the total costs.
Will the consolidation show up at the ZEK?
Yes. The new loan is registered at the Central Credit Information Office (ZEK) and the old contracts are reported as closed. That is normal and not a negative entry.
Can I borrow a little extra at the same time?
Yes, as long as your budget can carry the higher instalment. The bank then checks the full amount.
Does an open loan affect my C permit application?
The migration office looks at whether you meet your financial obligations. What usually counts against you is unpaid bills, debt enforcement or certificates of loss. A loan you repay as agreed is a normal contract. If you are unsure, ask your cantonal migration office before you apply.
What if I am already behind with payments?
Then a new loan is usually not the right tool, and banks will often say no if there is debt enforcement. Free and confidential help is available from Debt Advice Switzerland (Schuldenberatung Schweiz / Dettes Conseils Suisse) at schulden.ch.
Ready for one instalment?
Choose “debt consolidation” as the purpose in the form. Free of charge and without obligation.
Legal notice: Granting credit is prohibited if it leads to the consumer's over-indebtedness (Art. 3 UWG). Example calculation: Loan amount CHF 10’000, term 12 months, effective annual interest rate between 4.95 % and 9.95 %, total interest cost between CHF 264.16 and CHF 523.31. Terms from 6 to 120 months. The interest rate depends on creditworthiness.