A majority of federal citizens misjudge the cost of loans – and in the majority of cases too high.
This was the result of a survey by Credit Bankive among more than 1,000 consumers. When asked about the cost of a loan of over 8,000 usd, almost two-thirds estimated the funding costs too high. A good quarter went too low and underestimated the costs. Just one in ten was right in its estimate.
The collective misjudgment of the costs makes it clear that there is still much need for clarification. But more importantly, consumers also pay attention to and use the information provided to them. Banks and intermediaries are obliged by law to a maximum of transparency. Before signing, borrowers can see in detail how much the costs are and how they are made up.
Another result of the survey: Almost three quarters of Germans do not speak about loans – at least not outside the family. The result is not all that surprising. In Germany money is rarely talked about. There is nothing wrong with that. If the topic of credit is hushed up in the circle of acquaintances, however, an important information channel is eliminated, because tips from friends and acquaintances in the search for a favorable offer do not help.
The image of loans is largely neutral in the perception of consumers.
According to the survey, almost four-fifths of Germans rate loans neither positively nor negatively. However, just 38 percent of respondents had ever taken a loan. This suggests that many consumers still have contact.
A considerable part of the Germans could benefit from an installment loan. Millions of federal citizens use their credit account debit regularly or even continuously and pay hundreds of usd too many interest rates to their bank each year. This could be with a favorable rescheduling as well put a stop to the same high interest rates at many dealers and mail order financing, which are often only visually favorable.