If suddenly the washing machine or the car breaks down, you usually need a quick replacement. If you do not have enough reserves for a repair or a new purchase in your account, you usually have to take on debt. If the person pays the costs through his checking account and exceeds his limit, he must expect high interest rates. According to Max Lender from FM, banks are currently demanding an overdraft facility between 4.27 and 12.59 percent (as at 29 April 2016) for the overdraft.
A spokeswoman for the umbrella organization German banking explains the high interest rates for overdraft over the German Press Agency (dpa) as follows: “The banks must at any time the money that the customer may want to avail, keep in stock. This service costs. “The Dispo anyway intended only for short-term use. Who wants to borrow money or has to find cheaper alternatives. An overview:
It is suitable if you need a certain sum, which you can repay monthly in fixed installments. The shorter the term, the lower is usually the interest. Consumers should not calculate too tightly: “Arrange for rates that you can conveniently pay for over the term,” recommends Good Lender from the Hamburg Consumer Center. Otherwise you pay at the end by reminder or collection fees only on it.
According to FM, installment loans are currently available for an average of 4.87 percent (total: 5,000 euros, duration: 24 months, as of 29 April 2016). “Assuming the borrower’s credit rating is considered good,” says Herbst. Otherwise, some banks will require a risk premium. In the worst case – if the credit rating is bad – you get even at the bank no credit.
More scope is available to consumers with a credit line. Consumers can retrieve amounts within a given frame. “In contrast to installment credit, there is no predefined repayment plan,” explains Kerstin Backofen from the magazine “Finanztest” of Stiftung Warentest to the dpa. Usually you only have to repay a small minimum monthly amount. Here there is the danger to slip into an infinite duration, warns Good Lender.
On the other hand: With a bit of discipline, you can usually repay the loan faster. For example, if you have more budget than calculated. Flexibility costs: According to FM, the average interest on a credit line currently stands at 7.93 percent (total: 5,000 euros, duration: unlimited, as of 29 April 2016).
If consumers need to spend more on a short-term basis, they can pay by credit card. The advantage: The purchase price is often debited only after a few weeks. “The customer pays no interest if he immediately settles the credit card bill in a sum,” says oven.
But beware: Do not lose track of spending. Dangerous are credit card models in which the bill is paid only with partial amounts and not in a sum, warns oven. Because for the remaining part then high interest rates are due.
A vehicle can be financed via a so-called car loan. “As a rule, the interest rates are a bit cheaper,” says Herbst. The reason: the bank receives a countervalue from the customer as collateral. For if he can not repay his loan, the car is seized. The average interest rates are currently around 3.86 percent (maturity: 48 months, total: up to 30,000 euros, as of 29 April 2016).
Before consumers sign a contract with the dealer, they should also seek bids from the banks. “Sometimes it’s better to take a more expensive bank loan and then pay the car in cash,” says Good Lender. Because so you can often beat out the dealer a larger discount.
Providers like Pip convey not only bank but also peer-to-peer loans. Often private individuals lend the money there. Many providers are now checking the creditworthiness of borrowers. “If the bank does not grant you the loan, you do not necessarily get it there on favorable terms,” says Good Lender. Consumers should be clear: The rules are also tough there – who comes in arrears, can get in trouble with a collection company.