Being able to “afford” something – this is exactly what more and more Germans are doing by taking out one or even several loans. This is shown by several new surveys and analyses on the credit behaviour of Germans. Evidence that credit has become socially acceptable?

No money in your pocket and still indulge in consumption. A situation which, according to current surveys and statistics, always applies to German citizens. So there are fewer and fewer German citizens who, according to statistics, can call themselves truly debt-free. So has borrowing finally arrived in society? It seems so, because life on credit has now taken on a dynamic that one can easily conclude that the existence of one or even several loans per household seems to be a certain matter of course.

Figures show growth in loans to households

If you look at the results of surveys, one thing in particular stands out very clearly: The amount of credit taken out per German citizen has been rising continuously for years, as the following table shows:

  • 2017 lbei 9.552,00 €
  • 2018 at €10,225.00
  • 2019 at €10,272.00.

And a further increase is also expected for 2020. This is only promoted by the fact that interest rates for instalment loans have never been so low and the market has been “fired up” by numerous minus credit campaigns.

Older people are more indebted with loans than younger citizens

What is also noticeable when looking at numerous statistics is the fact that older people, especially the 50-54 age group, have the highest level of indebtedness through current loans. The burden of debt through loans within this age group amounted to € 11,784.00 on average in 2019.

In comparison, the age group of 18 to 21 years of age is virtually negligible in terms of debt, as the financial burden of loans in 2019 was just € 4,334. One of the reasons for this is that banks are less willing to grant large amounts of credit, especially to younger applicants.

Are the Germans debt kings through loans?

Are the German citizens debt kings? Are you too quick to succumb to the temptations of the numerous cheap credit offers on the market? Are they even irresponsible in their dealings with instalment loans, dispo and the like? Not at all, because, apart from regional differences, German borrowers are fully aware of their financial responsibility resulting from their loans. After all, an impressive 97% of all German borrowers know exactly how much they still owe their bank. This puts German borrowers at the forefront of European comparison. In conclusion, it remains to be said that as long as it is clear that taking out a loan is also associated with the obligation to make a reliable repayment, everything is good, at least from this point of view.