Young people in debt trap: online shopping is becoming expensive!

Young people in debt trap: online shopping is becoming expensive!

More and more young people in Germany are getting into debt traps by using online financial service providers such as PayPal and Klarna. These companies offer the popular payment method "Buy now, pay later". This option is particularly popular with the under 30 year olds. If you choose this, you can delay orders for a small surcharge or sometimes even free of charge for 30 days. The postponement of payments over several months is also offered, but often with additional fees, such as

Current statistics show that 750,000 people under the age of 30 in Germany are affected by over -indebtedness. This number has increased in the past two years, which according to rbb24 that young people often take help late. You are often not aware that there are free offers for debt counseling. Michael Goy-Yun from Creditreform emphasizes that the demand for installment loans and "Buy Now, Pay Later" solutions increases greatly, while debt advisor Matthias Klusmann reports on rejuvenation of the debtors who are affected by the age of 20.

financial consequences and impulse purchases

The use of such offers often has far -reaching financial consequences. Unpaid invoices can be passed on to debt collection companies, which not only leads to additional costs, but in the worst case also to attachments and negative Schufa entries. Buyers like the 24-year-old Kelly from Hanover describe that they have accumulated debts of 4,000 to 5,000 euros through online shopping. It describes online shopping as a "virtual leisure park" and has lost an overview of her finances. Klusmann advises to consider a private bankruptcy in an emergency because an entry in Schufa is deleted after six months.

These impulsive purchases are reinforced by social pressure, especially on social media such as Instagram and Tikok. From these platforms, consumer behavior and debts spread as a status symbol, which further endangers the financial education of young people. Oliver Salmen, a debtor advisor, emphasizes that such forms of consumption should be the exception. He recommends saving a financial buffer of two to three monthly salaries and always keeping an overview of your own income and expenses.

A growing awareness of financial education

Nevertheless, there are signs of growing awareness of financial issues among young people. According to a current youth study, 75% of the respondents are interested in dealing with money issues. 56% state that there is often something of their funds left, while 30% “just like this” with their money. The data of the Bankenverband is an growing share, especially in the age group between 21 and 24 years, for shares and securities. This is a positive trend that indicates an increasing understanding of financial responsibility.

However, the need for financial education remains unchanged. The federal government is currently working on a national financial education strategy to help young people improve their financial planning and to avoid impulsive consumption behavior. Overall, more than 8% of Germans are over -indebted, which makes it clear how important it is to educate young people about the risks of consumption and debt.