At the latest with the realization that Corona would also result in far-reaching measures in the banking industry as a result of compulsory economic measures, consumers took the opportunity to suspend the servicing of their loans. A corresponding law of the federal government gave the people an appropriate handle for this.
And this option of deferring loans has been used to a large extent, because according to a German business report and a representative survey carried out by them, around 15.5 million German households recorded massive income losses with the corona pandemic. Losses that, for around 25 percent of those surveyed, even amounted to up to 30 percent of their regular income, or still amount to today. And this caused massive difficulties, for example, to be able to service current loans.
According to a corresponding analysis of the survey, rising unemployment and the continued high numbers of short-time working are considered to be the cause of the sometimes quite high monthly income loss. It is noticeable that the loss of income particularly affects the low and normal earners, who have a thinner financial cushion than high earners and generally have less financial leeway.
A survey by the Safe Institute, the market researcher von Nielsen and the Chair of Finance and Economics at the University of Frankfurt last week also came to the result that the situation of the self-employed and those who are particularly affected by the pandemic are changing Sectors such as trade, transport or hospitality work have deteriorated.
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Consumers react to financial emergencies with austerity measures
The survey also shows that affected consumers have already taken measures themselves to adapt to the corona-related financial emergency as best as possible. Around 55 percent of those surveyed were the first to switch to adapting spending on consumption and living conditions to their own current financial situation. These 55 percent reflect around 22.7 million German households.
Which reveals something that has always basically been considered a virtue: The “rediscovery” of saving. Affected consumers use the red pencil especially when it comes to holidays, clothing and consumer goods that are not urgently needed such as smartphones, TVs, etc. However, spending on medication, old-age provision or even for pets is still considered essential by a high percentage of respondents.
Nevertheless, the question remains open, how long can a household actually “survive” financially with such a high loss of income and despite all the austerity measures? Or not, and in that case, to get into the spiral of debt through no fault of your own?
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The fear of financial losses remains
In addition, it is worrying, if more than understandable, whether the current Corona situation, that almost one in three (28 percent) is unsure whether the money will be enough in the next twelve months. Above all, in order to be able to pay all financial obligations such as rent and ancillary costs, loans or insurance contributions.
And so it is not surprising that up to the present day almost one in ten of the respondents stated that they had also made use of the legal options for deferring installment payments for consumer, real estate or car loans.
The survey thus confirms statements from the banking industry from the summer: As early as July, the Deputy CEO of Deutsche Bank, Karl von Rohr, said in an interview that more and more private customers of Deutsche Bank were approving their loans after the statutory expiry due to the corona crisis Can no longer serve the deferral. So is the credit collapse looming?
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Expert opinion: There is a threat of an increase in bankruptcies
The coming weeks will be particularly explosive, as the suspension of the obligation to file for insolvency for insolvent companies was lifted again in October. The possible consequences? Rising insolvency figures among companies, further increases in unemployment and, with a high degree of probability, also a significant increase in private bankruptcies.-
