Wiesbaden (dpa) – Despite concerns about the economy in times of rising inflation, according to a study, people in Germany have taken out several installment-free loans for the first time in four years.
In 2021, smaller amounts were demanded, especially from young people. Larger purchases, on the other hand, were postponed, as the credit bureau’s risk and creditworthiness compass shows. At the same time, consumers proved to be responsible debtors: they reliably repaid their installment loans even in the second year of Corona.
As in the two previous years, 97.9 percent of all mortgages taken out were serviced as agreed. According to the study, the pandemic also had no negative effects on the indebtedness and over-indebtedness of people in Germany in 2021.
High demand for loans under 1000 euros
Last year, Schufa counted around 6.9 million new installment loans. That was around 4.5 percent more than in 2020. In particular, the demand for loans rose below 1,000 euros. Their share of all new contracts rose from 19.9 percent in 2020 to 29.5 percent now. Shares of medium (1,000 to 10,000 euros) and large installment loans (from 10,000 euros) fell in return.
“The Germans are postponing major purchases. This also reflects the mood of our consumer surveys, which we conduct on an ongoing basis,” explains Schufa board member Ole Schröder. In a survey in May, 57 percent of the population said they were postponing major investments.
Energy prices were already driving up consumer prices last year. Inflation averaged 3.1 percent for the year. Further rising energy prices as a result of the Ukraine war will exacerbate the development this year.
Buy it now pay later offers are popular with boys
According to the information, lower loan amounts were particularly popular with younger people last year. The average amount of new loans under 1000 euros was around 409 euros across all age groups and 343 euros for 18 to 19 year olds. “The high proportion of low loan amounts, especially among younger, internet-savvy target groups, is of course due to so-called buy-it-now-buy-later offers, which are increasingly in demand,” explained Schröder.
This is buying on pump with online payment services. According to the financial supervisory authority Bafin, consumers can subsequently postpone the payment target for some payment services to a later date or convert the outstanding invoice amount into installment payments. With other payment services, open invoices that a customer has with a retailer are combined over a certain period of time and only become due later. “These supposedly practical payment solutions can quickly turn out to be a debt trap for young people,” Schröder warned. The Bafinen also recently warned that it is easy to lose track.
Consumer advocates criticize that there is often no credit check with this form of financing and that the information before the contract is signed is sometimes insufficient. This made it difficult for consumers to assess what they were getting themselves into.
The data collected and evaluated by Schufa and other credit bureaus is important for millions of people who want to take out loans or sign rental contracts. Mortgages and leasing contracts are not included in the credit compass.
© dpa-infocom, dpa: 220621-99-737472/2
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