What happens to the income of Germans and what are loans for?
The number of credit agreements in Germany has risen by more than 47% in the last 10 years. According to Private credit Holding AG, the repayment rate is very high, at around 97%. Not only these, but also other statistics and studies show that the majority of Germans are very responsible with their finances and especially the repayment of liabilities bypasses.
According to banks, more than 7 million Germans took out loans in 2014 for a variety of reasons. This represents an increase of around 40,000 loans compared to the previous year. In addition, it can also be said that consumers are looking for significantly more deals before they close their credit and are increasingly comparing them. This statement can also be substantiated by the access figures of the Private credit data: Consumers who have a credit activity in the Private credit database have asked over one-third more inquiries in the last 10 years before concluding a loan. The average age of a German borrower is currently 35 and rising from year to year. The high average age results from the fact that most loans are taken not for everyday things, but for the purchase of an apartment or house building. In contrast, there are no differences between East and West Germany. It can be said, however, that city dwellers resort to loans much more often than people whose focus is a rural area.
What do the Germans spend their money on?
Living and living in Germany is becoming increasingly expensive, so it is not surprising that more than half (56%) of Germans’ income is spent on rent and food. With 17% of income, insurance also takes up a large part of the budget. The list is completed with costs such as car (12%), vacation (6%) and household appliances (5%). If you consider that the average income in Germany is about 2048 euros, at the end of the month usually not much left. For luxury goods or home construction must therefore be taken in most cases, a loan.
What is a loan taken in Germany?
As mentioned above, the main reason for a home loan or housing purchase is the conclusion. More than half of all loans are taken out as part of a housing purchase. In second place are luxury items such as cars followed by everyday items such as clothing. The reasons for over-indebtedness are unemployment (27%), divorce (14%), illness (12%) and failed self-employment (8%) – just to name a few.
Also with the loan height there are tendencies. Thus, most loans for amounts up to 1,000 euros are completed. As you can see, not only high credit sums are interesting, but so-called microcredits. Over 50% of all loans, however, refer to sums beyond 3,000 euros. Alone 27% of all loans are concluded for amounts in excess of € 10,000. Interestingly, while 56% of all loans are used for home construction, the loan of € 10,000 is only exceeded in 27% of cases – one might think that housing loans should be higher.