Obviously, the Germans spent a lot of money during the Christmas season. The German Retail Association (HDE) has forecast total spending for November and December 2021 at EUR 111.7 billion – a two percent increase from the previous year (EUR 109.5 billion).

One result: There are 6.6 million Germans (9.5 percent) currently in overdraft facilities. Which is 17 percent more than in January 2021.

This is shown by representative surveys commissioned by the credit portal smava.

And overdrawing is costly, as bank customers pay an average of 9.51 percent overdraft interest, according to the Stiftung Warrentest.

Almost every second with over 1500 euros in red

Consumers are currently growing their checking accounts to varying degrees.

One in six (16.8 percent) is up to 250 euros in red.

The overdraft facility has as many (16.8 percent) up to EUR 500.

Almost every second overdraft user (49.5 percent) overdrafts an account in excess of EUR 1500.

If the account is overdrawn, usually 51.6 per cent can be compensated within a month. Almost every sixth dispos user (15.9 percent) needed up to three months, and a similar number (14.7 percent) needed more than twelve months to rebalance their account.

“With around ten per cent interest, the overdraft facility is an expensive way to borrow money. Therefore, it should be used only for a short time. Because the longer you use it, the more interest you pay,” says Alexander Artope, managing director of credit portal smava.

Experts recommend switching. An installment loan is on average 41 percent cheaper as compared to an overdraft facility.