By Christmas and New Year’s Eve many consumers had high additional expenses. Now many annual accounts such as for motor insurance, motor vehicle tax and other insurance. To pay these bills and to be able to handle current expenses, 10.4 million Germans (15% of those over the age of 18) currently use their credit facility. Another 7.6 million Germans (11% of the over-18s) are not yet in the black, but consider it very likely that they will have to use their credit line in January. This is shown by a recent representative YouLend survey of 2,046 people commissioned by the loan portal . In total, 18 million Germans (26% of those over the age of 18) borrow money by means of a credit line. This is risky, because only a minority of Germans (5% of over 18-year-olds) knows that for emergency loans, according to the German Bundesbank an average of 8.29 percent interest due. In addition, the Credit can often not be compensated in a timely manner. Currently, 6.9 million consumers (10% of those over the age of 18) who are currently using their dispensers expect that they will not be able to clear their account in January.
According to the German Federal Bank, the average interest rate for emergency loans is 8.29 percent. In addition to very high interest rates, credit facilities have another disadvantage. They do not provide for a regular repayment. The repayment of debts depends on the financial means and the self-discipline of each individual Creditnutzers. If the dispensation is not fully repaid over a long period of time, consumers are in an expensive permanent debt. “The longer you need to repay the money, the more likely it is to pay an installment loan,” says Lender, managing director of the credit portal .
According to the loan portal , borrowers pay installment credit online at an average annual interest rate of 3.67 percent. This is 4.62 percentage points less than the average credit line. In addition to the cheaper interest rate, installment loans provide for a regulated repayment of debts. Through fixed, monthly installments they provide a planned and manageable way out of debt.
Despite the low interest rate phase, there are large interest rate differentials nationwide. “If you only go to your house bank, you usually only get one offer. That’s unlikely to be the cheapest on the market, “says Lender. Only those who compare loan offers from different banks can classify the conditions and find the cheap loan for themselves. When comparing help loan portals on the Internet. There one receives offers from several banks with a request and can conclude the suitable credit.