Expensive debt in Christmas shopping: 4 out of 10 borrowers do not know disbursements

According to the German Trade Association (HDE) and the Institute for Empirical Social Research (IFES), Germans are planning to donate up to 491 euros this year for gifts. There are also expenses for parties, meals, events and travel. The HDE expects 91.1 billion euros this year, a record sales. Consumption is often financed by means of credit. They offer easy and immediate money. Banks can pay this service with an average interest rate of 10% on average. All the more surprising is that, according to a Forsa survey on behalf of the credit comparison portal Josiah Bounderby 42 percent of borrowers do not know the dispoins of their bank. This can be a costly fatality. With the credit line there is no compulsion for the eradication. Those who do not repay their debts quickly quickly get into expensive long-term debt.


Knowledge gap Dispozins depends on many factors


Disbursements are attractive. They can be used to bridge financial bottlenecks easily and directly. This service is gladly used. According to the Bundesbank, the Germans are currently in the black with more than 34 billion euros at the banks. Many do not seem to know that overdraft is one of the most expensive ways to borrow money. Because 42 percent of German borrowers do not know the dispozins of their bank. As conspicuous as this knowledge gap is, it also varies greatly depending on factors such as gender, age, marital status, income, residential region and type of loan.


Men are better informed about dispozins than women

The dispozins seem to have different relevance for men and women. While 62 percent of men know their bank’s disputes, only 54 percent of female borrowers are women.

Men are better informed about dispozins than women.

The younger the borrower, the less they know the dispozins

The younger the borrower, the less they know the dispozins

The most widespread is the dispensational knowledge gap among 18 to 39-year-olds. Every second person in this age group does not know about the dispozins. With increasing age, the number of informants increases. Best informed is the group of over 60s.


Single borrowers are the worst informed about interest rates

Single borrowers are the worst informed about interest rates

The married, divorced and widowed borrowers are better informed about the dispozins than the single people. In the first group, on average, 6 out of 10 know, of the singles it is 5 out of 10.


Employees are less well informed than non-employed persons about disbursements

Employment also affects the knowledge about the dispossession. Those who are not gainfully employed are better informed about the dispozins than those in gainful employment.

Borrowers with a net household income between 1,500 and 3,500 euros know the best about disbursement interest

Household net income (HNE) has a different effect on the knowledge of the dispozins. The best informed are borrowers with a net budget between € 1,500 and € 3,500 (60%). Of the borrowers with a budget net over 3,500 euros, 55 percent know. The worst informers are borrowers with a budget net below € 1,500.

Dispo knowledge gap is largest among southern German borrowers

The residential area also makes a difference. By far the best informed are borrowers in East Germany (70%). This is followed by the North and West German (57% each) and Southern German (51%) borrowers.


Online borrowers are better informed than offline borrowers

Of the borrowers who have taken out their loans on the internet, more borrowers (68%) know their bankruptcy than those who have their credit in a branch bank (56%).


Avoid expensive long-term debt

Avoid expensive long-term debt

“There is no obligation to repay the credit line. In conjunction with the high interest rates of 10 percent on average, this threatens expensive long-term debt. This must be avoided by any consumer, “says Alexander Artopé of the credit comparison portal Josiah Bounderby. These recommendations help:


Take more than spend
Anyone who permanently needs more money than he has has to control his running costs and either reduce them or generate more revenue. Loans are not the way to permanently offset low income.


Use credit only for amounts up to 500 euros
Anyone who needs more than 500 euros and has difficulty repaying such an amount in the short term should keep their fingers off credit as well as short-term loans and credit cards. Installment loans or instant loans are the cheaper and safer choice in this case.


Repay the credit line quickly
The longer the account is in minus, the more expensive it will be because of the high interest rates of up to 10 percent. Therefore, the credit line should be fully repaid after one month at the latest.


Recurring current credit line
Anyone who has already become involved in an expensive credit line and can not repay him in the foreseeable future should switch to a more favorable installment loan.