Christmas on Pump: 19 percent of Germans had to borrow for gifts money
Christmas, the feast of family and gifts is over. The children have unpacked their gifts with bright eyes – in many cases unaware that their parents had to borrow money for it. According to a survey by Intrum Deutschland GmbH, 22 percent of Germans had to worry about whether they could afford the Christmas gifts at all.
One third of Germans borrow money for Christmas presents
Twenty-seven percent of respondents were aware that spending their gifts on gifts exceeded their household budget. One in five respondents, 19 percent of respondents, said they occasionally borrow money or overdraw their account for the gifts. Especially for parents, Christmas is a major financial burden. Almost a third – 31 percent of consumers – with children under 18 years of age in the study said they had to borrow money for Christmas and gifts for the family. As a result, January is the most financially difficult month of the year for these families.
Christmas spirit leads to high expenses
Jürgen Sonder, Managing Director and Chief Commercial Officer of Intrum also says: “The Christmas spirit can obviously tempt to get his loved ones partly too expensive gifts.” This impression is in line with the observation that Intrum has made over the last few years: there is a growing consumer acceptance of buying on credit. The result: an unhealthy long-term debt. Remedy, especially when expensive dates such as Christmas are just around the corner, to set a limit. So only gifts can be bought, which are in the budget. If you pay attention, you can look forward to a more relaxed New Year and January.
When a loan has to be taken, consumers should make sure that it fits in with their conditions. This means that the credit must not be too high – so in no case should a higher sum be taken as needed. In addition, the loan should be flexibly repayable – with special repayments without prepayment penalties. For a very low income, a payday loan is best suited. The small sum of a few hundred euros can be repaid within 30 days. So there is no long-term, monthly burden.
About the European Consumer Payment Report 2018
For the cited study, more than 24,000 consumers from 24 European countries aged 18 to 65 were interviewed in September 2018. Since 2013, household management questions have been raised to gain insight into spending habits and household budget management.