Overdraft and overdraft: Financial expert warns of permanent burden

Overdraft and overdraft: Financial expert warns of permanent burden

According to a report by amp.zdf.de, a survey has shown that around one in seven consumers in Germany have recently overdrawn their account or taken advantage of their overdraft facility. The reason given was the higher cost of living and energy costs.

This increasing use of overdrafts and overdrafts can have a significant impact on the market and consumers. Due to increased living and energy costs, consumers are forced to resort to loans to cover their expenses. This can lead to increased debt and affect consumers' financial stability.

The head of the Federal Association of Consumer Organizations, Ramona Pop, is calling for measures to protect consumers from the so-called “overdraft trap”. She suggests making it easier to access free debt advice and setting a maximum limit for overdrafts instead of capping interest rates. These measures could help protect consumers from over-indebtedness and improve their financial situation.

The increasing use of overdrafts and the associated financial burden on consumers could therefore lead to the federal government and financial institutions taking measures to provide relief to consumers and promote their financial health. This could impact banks' lending practices as well as consumer spending.

Implementing measures to protect consumers from over-indebtedness and financial stress could mitigate the impact of increased living and energy costs on consumers. The steps taken by the federal government and financial institutions to regulate overdrafts could therefore help ensure consumers' financial stability and mitigate the negative impact of cost increases.