Surveying by YouGov: - Each fourth individual injects funds.
When it comes to fixing household issues, obtaining a car repair, or paying vet bills, numerous Germans have turned to borrowing money over the past two years.
YouGov conducted a survey for Barclays Bank that revealed 25 percent of the 2,027 surveyed adults were unable to provide sufficient personal savings for these expenses. Among those who required a short-term loan in the last two years, 40 percent underwent a single incident, while 39 percent borrowed twice or thrice, and 16 percent five or more times. The average loan amount usually ranged from 1,001 to 5,000 euros, and 24 percent of those impacted needed between 501 and 1,000 euros for their financial surge.
People generally borrowed from banks as the top choice (40 percent). One-third (33 percent) borrowed from family members, and 13 percent went for friends. Barclays found that depending on the loan amount, consumers would either turn to family and friends (58 percent for up to 1,000 euros) or financial service providers (62 percent for amounts above 1,000 euros).
Tobias Gries, head of private customers at Barclays in Germany, summarized the findings by stating, "These results demonstrate the rising importance for consumers to swiftly and bureaucratically handle financial shortages. Many people find it uncomfortable to request funds from friends or family, yet hesitate from the endeavor of visiting a bank. That's why financial tools like overdraft protection or credit cards are advantageous for clients seeking quick and hassle-free credit."
However, consumer activists constantly encourage opting for an installment loan over overdrawing the checking account with a credit card. Installment loans usually carry lower interest rates than credit card draws if the debt persists for an extended period with a raised sum. Thus, alternative options could be more cost-effective in the long run.
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