Anyone who listens to a classic character trait of the Germans often gets the following answer: economical ! That may still be true in principle, but times are changing.
Especially when the ECB’s low-interest-rate policy is prompting European consumers to spend their money instead of saving it. So it is not surprising that more and more people use a loan to finance consumer goods.
Since 2013, the demand for loans has been rising steadily and an end to the flagpole is far from being in sight for borrowing.
42 percent of citizens use loans
Currently, the Germans stutter off a good 225 billion euros in lending volume. A study by GfK shows that as many as 42 percent of German households use consumer finance through a loan .
The most common type of loan is classic consumer credit or consumer credit. For the lending banks, consumer loan-financed life is a good deal. Even though the banks are not getting tired of talking about the opposite, consumer credit is far from the low-margin business that you could hold it for or make people believe!
On the contrary, recent studies show that margins on loans for banks have even increased significantly in recent years.
Credit threshold seems to have dropped significantly
That a loan for more and more people should be more of a positive option than inhibition, especially in the advertising. Because it is often suggested to people that it is perfectly normal to get into debt. But for the increased willingness to finance their own consumption by means of a loan , there are other reasons.
There are, of course, the currently historically low interest rates, which make credit seem particularly favorable right now. On the other hand, the labor market situation has been good for years and consumers are hardly left with job worries. Points that can certainly “fuel” consumption. But the easy handling of loans has its downside and that means simply over-indebtedness.
Because when consumers spend money that does not exist at the time of purchase, it is inevitably associated with a not just low risk. It is not without reason that debt counselors refer to the fact that their number of clientele with financial difficulties has been steadily rising for years. In addition, calls for state intervention to prevent over-indebtedness have been coming up for years from a wide range of consumer protection issues.
Over 90% of citizens repay loans on time
A reputation that the banking industry association as the umbrella organization of the commercial banks in Germany, in this form can not understand. Because according to the trade association, after all, 97.6 percent of borrowers pay off their installment loan on time. A statement, which is also supported by the current figures of Credit checker.
But these numbers also prove that the remaining 2.4 percent of Germans have real debt problems. So the question arises, what can be done to not belong to the future as a consumer to those 2.4 percent “debtors with payment problems”? Basically, no life should be financed on credit.
Inputs and expenses should be known on a monthly basis and a corresponding budget may be the appropriate help here. This is the only way to see how much is left in the month and whether this is sufficient for the taking up of a loan under the aspect of monthly installments! And without it being financially tight!