Debt repayment Schemes } Time Needed

According to current information from the Federal Statistical Office, around 3.1 million German federal budgets are clearly over-indebted. This means that around 7 million Germans with an immense debt burden (over 30,000 euros) have to fight and that over the years. On average, a period of almost three years is necessary to ensure that over-indebtedness can be repaid in Germany – provided one uses all of his income to repay debt as a debtor.

Debt increases among consumers

 Debt increases among consumers Taking into account only the debt figures reported by a recognized debt counseling service in Germany in 2014, these numbers give an average debt burden of 34,504 euros. However, the actual value is likely to be higher because, albeit not perfectly verifiable, many people carry their debts without turning to a debt counseling service. Again, the debt burden of over 34,000 euros on average refers only to the reported over-indebtedness.

The reasons for a debt

 

 But what are the reasons why German citizens are so over-indebted? This question can also be answered quite clearly: Thus, with almost 19 percent share of job loss cause number 1 for over-indebtedness. Followed by a costly separation or divorce, loss of income or limitation due to accident and / or illness, an inefficient housekeeping and a failed self-employment. In particular, the point of “uneconomical housekeeping” stirs attention, because here is the main trigger of over-indebtedness too high a credit burden through disposition and consumer loans. Consequently, German citizens tend to indulge in more goods than you could actually afford !?

 

More than 3 years needed to pay off debts

 

 More than 3 years needed to pay off debts If you just assume that about 1020 euros could be used to repay debt every month, it would take about 34 months until the 34,500 euro debt burden on Heller and Pfenning has been paid off. Since the repayment amount of 1020 euros per month, however, seems rather utopian, so the real duration of the debt repayment should be rather 6-8 years. Always provided that permanent, a stable income for debt repayment is available.
By the way: Anyone who thinks that the younger generation is more often “in the dark” is penalizing the current statistics on over-indebtedness, because exactly the opposite is the reality. The older the people are, the higher the debt is!

 

Our conclusion

 As a provider of mini-loans and short-term loans, of course, we have an interest in helping many people out of a financial emergency situation as quickly and easily as possible. Nevertheless, we only appeal to all our clients to take out a loan if they are sure that they will be able to repay it to us as agreed. Because we do not want to contribute to growing over-indebtedness with our loans.

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