38% of people in Germany buy on credit: Survey

When money is tight, buying on credit is the most popular way of getting some help for people living in Germany, reported dpa, quoting a survey published on Wednesday.

The poll, conducted by the firm YouGov for the company TeamBank, asked 3,160 people between 18 and 79 in June and July what forms of credit they used.

Some 73% stated that they had used at least one financing option before, with the most popular, at 38%, being buying on credit, while nearly a third (29%) said they used the overdraft facility at their bank. Those who opted for purchases in instalments came in at 26% while 28% took out loans for larger purchases, such as real estate.

Those with more money are more likely to use financing, according to TeamBank. Of those who have previously taken out a loan for larger purchases, 46% have a monthly net household income of €4,000 or more.

The picture is different for people on lower incomes: for example, only 13% of respondents with a monthly household income of less than €1,000 have opted for a loan for major purchases or a classic instalment loan.

Still, 27% say they don't use financing, the bank said, and 56% said they only use it in exceptional cases.

Of those surveyed, 30% are worried that they will not be able to meet their payment obligations on time. The survey also showed that one in three people has less money available each month compared to a year ago.