Many people do not have a financial cushion to cover unplanned expenses. Some even have to borrow money more often.
“The results clearly show that it is becoming increasingly important for consumers to cover financial bottlenecks quickly and without red tape,” said Tobias Griess, head of private customer services at Barclays in Germany, in summing up the results of the YouGov survey. – Mascha Brichta/dpa-tmn/dpa
The most important things in brief
- In Germany, a quarter of adults live on credit.
- The amount is usually between 1,001 and 5,000 euros.
- Many borrow money from family or friends.
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Whether it’s repairs to your house or car, broken household appliances or outstanding veterinary bills – many people in Germany have had to borrow money for such expenses over the past two years.
A quarter (25 percent) of the adults surveyed by YouGov for the direct bank Barclays in 2027 did not have enough buffer to bridge a financial bottleneck from their own resources.
One in four people in Germany borrows money. The amounts are usually between 1,001 and 5,000 euros. – keystone
For 40 percent of those who needed a loan in the short term, it was a one-time occurrence in the past 24 months. 39 percent had to borrow money two to three times, and 16 percent up to five times or more often.
In most cases (29 percent) the amounts involved were between 1,001 euros and 5,000 euros. A quarter (24 percent) of those affected borrowed between 501 and 1,000 euros to bridge a financial shortfall.
Many borrow money from family and friends
Those who needed additional liquidity mostly resorted to offers from banks (40 percent). A third of those affected (33 percent) borrowed money from family members, 13 percent turned to friends.
Where people borrow money depends primarily on the amount, explained Barclays based on survey data collected in mid-May: For amounts of up to 1,000 euros, the majority preferred to turn to family and friends, while for amounts above that, financial service providers were the preferred source at 62 percent.
When people need money, they often turn to family and friends. – keystone
“The results clearly show that it is becoming increasingly important for consumers to cover financial bottlenecks quickly and without red tape,” said Tobias Griess, head of private customer services at Barclays in Germany, summing up the results of the survey.
“Many people do not want to ask friends or family for money, but at the same time are afraid of the effort of going to a bank. That is why there are financial instruments such as overdrafts or credit cards that customers can use to borrow money at short notice at any time.”
However, consumer advocates always recommend taking out an installment loan rather than overdrawing your current account with an overdraft. This is because overdraft interest rates are usually significantly higher than the interest rates for an installment loan. So if you are in the red for a longer period with a large amount in your account, other options can be significantly cheaper.
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