Compared with the previous year, installment loans increased by 4 percent. This emerges from a study by GfK Finanzmarktforschung, which investigates the use of personal loans on behalf of the banking association every year. Accordingly, 33 percent of households use installment loans to finance consumer spending from TVs to cars.
In particular, borrowing through banks has increased, while borrowing in the trade has remained constant. Around ten percent of bank loans are now used by consumers to replace a discretionary loan. “Credit is an everyday product that consumers are very aware of,” says Peter Wacket, Managing Director of the Banking Association. Depending on the consumption, they use different credit products, for larger purchases rather installment loans and for short-term liquidity needs rather framework loans such as the credit line.
Overall, the use of financing including other forms of financing such as credit cards and leasing remains stable at around 40 percent. Throughout Germany, private individuals have borrowed loans worth 223 billion euros (excluding housing). This value is also at a constant level. On average, credit users have 1.6 financing contracts and currently have to pay a total of around 9,000 euros back to the bank. Much of this is attributable to new or used car financing, which is one of the most important financing objects. One third of all private cars are financed. The acquisition costs for new and used cars amount to an average of 16,000 euros.