Only the corona pandemic, currently also the Ukraine war and the planning of the energy transition are driving prices up further and further. The inflation rate reaches record levels. In February of this year it was around 5 percent above the level of the same month last year, according to the Federal Statistical Office it was already 7.3 percent in March.
The last time there was a similar drastic increase in the old federal states was in autumn 1981, when mineral oil prices exploded as a result of the First Gulf War. The currently rising prices are becoming a problem for more and more people. In a recent YouGov survey commissioned by Postbank, almost every seventh German (15.2 percent) stated that this would cause them financial hardship. In a comparative survey from January this year, only eleven percent of respondents said so. Many people have no choice but to overdraw their account and use the overdraft facility.
However, if the account balance is already in the red and important purchases are necessary – for example because the washing machine or refrigerator has broken – there is a need for action. One of the biggest cost traps with all loans is high interest rates. Anyone who uses the overdraft facility that is part of the checking account – which is actually called overdraft facility – usually has to dig deep into their pockets. Average Banks collect 9.51 percent interest, the magazine “Finanztest” (October 2020) determined. So if you need the money over a longer period of time or plan to spend more than 500 euros, you are better served with other loans.
Only 20 percent use installment loans
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