It is not, because a recent and especially representative survey of the pollster FORSA shows exactly such a result. Forty-two percent of all respondents who have used a credit line or are currently using it do not know the amount of their interest rate for this credit line. Unbelievable considering that these very people are constantly looking around for bargains right now at Christmas time trying to achieve financial savings. However, if these bargains are financed through the use of an emergency loan, this behavior is essentially absurd.
Ignorance of the amount of disparity is fatal
There is a saying that says ignorance does not protect against punishment, and this sentence is no accident. Although this phrase is often used in a different context, it also applies to the topic of lack of credit. The ignorance of the valid interest rate for a credit line can have fatal consequences, which is due to the construction of this type of credit. For the credit line there is no compulsion to pay off. Neither in the form of a fixed installment, nor in installments, nor at any given time – in most cases at least. The only regularity for a credit line is the monthly accrued interest. Anyone who does not repay their debts swiftly and regularly to the lending bank will undoubtedly run the risk of getting into expensive long-term debt.
The credit line is simple, but dangerous
What you could avoid, however, if you would inform yourself about his credit plan comprehensive. But obviously people hide the necessity of “informing themselves” at the credit line completely and prefer to focus on what is also much easier “to handle. The loan is available at any time, you do not have to ask the bank consultant and, no explanations, no paperwork. Pay at the checkout with the girocard and is good – even if the account basically has no credit. The credit line is here. Logical order? The disbursement credit is perceived as attractive, because with him financial shortages can be bridged simply and immediately. The fact that this loan is often used is confirmed by current figures from the Bundesbank, according to which Germans are in the black with more than € 34 billion at the banks. Many do not seem to know that overdraft is one of the most expensive ways to borrow money.
Ignorance depends on a variety of factors
The question that arises on the subject of ignorance of dispensation depends on which factors or personal characteristics of an individual? According to FORSA’s survey results, factors such as gender, age, marital status, income, residential region and type of loan are particularly important here. Detailed information about this survey can be found here.