It is not, because a current and, above all, representative survey of the opinion research institute FORSA shows exactly this result. 42 per cent of all respondents who have used or are currently using a loan do not know the amount of their interest rate for this loan. Incredible, considering that exactly those people are constantly looking for some bargains right now in the Christmas season and so try to achieve financial savings. If, however, these bargains are then financed by the use of a credit, this behavior is basically absurd.
There is a proverb that says that ignorance does not protect against punishment and this sentence does not come by chance. Although this rate is often used in a different context, it is also the subject of lack of credit knowledge. The non-recognition of the current interest rate for a $2.000 loan can have fatal consequences, which is due to the construction of this type of long term loan. Because there is no compulsion to repay the loan. Neither in the Form of a fixed Council agreement, nor in the height of the council, nor at a certain time – in most cases at least. The only regularity with a credit facility is the monthly interest. Thus, if you do not repay your debt quickly and regularly to the bank providing the loan, you will undoubtedly run the risk of getting into an expensive long-term debt.
What to avoid however, if you would inform yourself on its line of credit fully. But obviously people completely hide the need to” inform themselves “in the lender and focus rather on what is also much easier” to handle. The credit is available at any time, you do not have to ask first to the banking consultant and no explanations, no paperwork. At the cashier with the Girocard pay and is good-even if the account basically has no credit. The Lender is here. Logical Consequence? The loan is perceived as attractive, because with it, financial bottlenecks can be bridged easily and directly. Recent figures from the Lenders show that this loan is often used, according to which the USA are in the chalk with more than 34 billion dollars at the banks. The fact that $1.000-3.000 loans are one of the most expensive ways to borrow money seems to be unknown to many.
Ignorance depends on a variety of factors. The question that arises about the unawareness of the long term loan interest depends on which factors or personal characteristics of an individual? According to the survey results of FORSA, factors such as gender, age, marital status, income, region of residence and type of credit are of particular importance here. Detailed information on this survey can be found here.