The next dream vacation is planned, a new car used or the income co-financed: The motives for a loan are many. German social researchers, economic experts and the political elite regularly deal with the prosperity of the country.
A large pool of data sets with a wide variety of interpretation aims is to provide information about the cost of living or the income and expenditure of German households. Anyone who takes out a loan usually has a good credit rating, because the creditworthiness requires a financially stable budget. That’s why we ask ourselves:
Since when are there loans and where do they come from?
“Nothing goes without moss” – this popular saying is often used in the vernacular, when the financial situation affects a cost-related project. The credit is an indispensable asset for many citizens worldwide. The peasants of Mesopotamia already knew this around 3000 BC, when they borrowed grain and repaid it after the harvest plus interest. This simple credit system ensured at that time the existence of entire families. Even today, loans are an important foundation on which houses are built, cars are financed or household finances are upgraded . There are a variety of loan models for every investment in your choice: from short-term microloans to long-term loans with maturities of several years .
A special feature of the loan can be found in its word source itself. The Latin creditum means something “entrusted to good faith” and thus describes the loan as a relationship of trust that exists between the creditor as the lender and the debtor as the borrower. A major distinction is in lending transactions , the so-called cash loans, and the loan lending transactions, in which the bank formulates a payment pledge to third parties. Lending is one of the most relevant banking sectors and is enriching and necessary for a large proportion of people in industrialized nations.
Infographic: Credit motives and the cost of living of German households
Type and amount of credit usage
Which loans are used in Germany and how high are they?
Overall, the German citizens use loans with an upward trend. In 2015, loans with a volume of EUR 1,606 billion were granted to private households in Germany, compared to EUR 1,654.4 billion in 2016.
Much of it is the use of installment loans . In the process, 33 percent of customers use their credit to finance a used car. At 26 percent, financing a new car is one of the second most popular lending motives, closely followed by investment in furniture and consumer electronics at 17 percent.
|Purpose of installment loans in 2016||use|
|Consumer electronics, computers||17%|
|Large household appliances||14%|
|Replacement installment credit / e||13%|
|Compensation of the disposition credit||13%|
|Education / training, studies||3%|
|other vehicles||1 %|
|Motorcycle, moped, scooter||1 %|
Who uses the loan to finance larger purchases , does so in 47 percent of cases once. Twenty-six percent of credit users finance two investments and 14% use the loan to cover three financings. This result underpins that the loan is chosen wisely and is usually requested for more costly purchases.
|Number of financing of financing users in 2016||user|
|Five financings and more||7%|
Income and expenditure of German households
In addition to the credit motive, the income and expenditure of the citizens play a decisive role in the question of the creditworthiness and the need for a loan.
In 2016, the average gross monthly salary of full-time employees in Germany was 4078 euros. 21.2 percent of this is attributable to the rent of self-occupied living space. According to the Federal Statistics Office, 13.9 percent was spent on food, 10.5 percent for leisure activities and 4.4 percent for clothing. The typical male borrower has his income and expenses in view with a coup d’état in a 2.3-person household and tends to resort to a loan as soon as the expenditure exceeds the income in the long term due to a larger investment. Small loans are also preferred in Germany – they are a popular alternative to compensate for short or short term shortages.
|Share of consumer spending per household per month in Germany in 2015||use|
|Housing, energy and housing maintenance||35.9%|
|Food, drinks and tobacco||13.9%|
|Leisure, entertainment and culture||10.5%|
|Accommodation u. Restaurant services||5.7%|
|Interior fittings, household appliances and objects||5.3%|
|Clothing and shoes||4.4%|
|Other goods and services||3.7%|
|Post and Telecommunications||2.6%|
Conclusion: short-term loans as a relevant financial support
An informative survey shows the results of the short-term loans taken. These underpin the fact that short-term loans have an important purpose: they are mainly used to pay bills or make necessary repairs. This makes it clear that short-term and small loans are used extensively to ensure a stable credit rating – and this in the federal states, where the income and expenditure show a healthy difference.