High living and energy costs are driving consumers to overdraft their accounts - financial experts warn of a debt spiral

High living and energy costs are driving consumers to overdraft their accounts - financial experts warn of a debt spiral

According to a report from www.rbb24.de, a survey by the consumer advice center has shown that one in seven consumers in Germany has recently overdrawn their account or used their overdraft facility. This is primarily due to the increased cost of living and energy. Nine percent of those surveyed assume that they will not be able to bear the increased costs in the long term. Many people use their overdraft facility long-term, even though it is actually only intended to bridge short-term bottlenecks. Ramona Pop, head of the consumer advice center, warns of the consequences of such a development and is in favor of greater limits on the maximum limit for overdrafts. The average interest rate for overdrafts in Germany is around ten percent, which some experts classify as immoral.

The increased cost of living and energy not only impacts consumers' everyday lives, but also the market in general. Rising inflation is causing consumers' purchasing power to decline, which in turn could have a negative impact on many companies' sales. In addition, rising energy costs could make production more expensive and thus drive up prices for consumers further. A possible limit on overdraft interest rates would reduce the financial burden on consumers and thus also strengthen liquidity and willingness to consume.

However, it remains to be seen which measures will actually be implemented politically to meet the economic challenges resulting from the increased costs. It is to be hoped that politicians will develop appropriate strategies to stabilize the financial situation of consumers and support long-term economic development.