In the next 12 months, demand for loans to finance purchases among private individuals will be at a similar level to last year. This forecast is based on the current consumer credit index from the banking association, which shows a stable willingness to borrow among consumers. The assessment was carried out in collaboration with the market research institute Ipsos, which surveyed around 1,800 households about their purchase and financing plans.
Different demand depending on the financing purpose
The banking association creates the consumer credit index from the results of the survey. Overall, the index currently stands at 84 points. A score between 75 and 125 indicates consistent credit usage in the future, less than 75 points indicates declining interest in loans, and more than 125 points indicates increasing demand. Depending on the purpose of the financing, different trends can be observed, reports the banking association.
With a level of 189 index points, there is a sharp increase in demand for loans for other purchases. This includes, among other things, renovations and modernizations in your own home, such as replacing the heating system or purchasing a photovoltaic system. For kitchens and furniture, the index signals a slight increase at 119 points.
However, financing plans for cars and consumer electronics are declining. For car loans, the index value drops to 62 points. In 2023, demand was slightly higher at 85 points. Demand for financing for consumer electronics such as televisions is declining even more sharply. Here the index value is 73 points. Last year demand was significantly higher at 129 points.
There is little change in loans for large household appliances such as dishwashers, washing machines or refrigerators. At 73 points, the index predicts a slight decline in demand.
Restraint in consumer goods
The survey also shows that credit demand is being held back by a general restraint in spending. “Many consumers are unsettled by the challenging economic situation and are hesitant to make private investments,” says Jens Loa, managing director of the banking association. This is particularly evident in consumer electronics, while the willingness to invest in furniture and home ownership is stable.
Oliver Maier, Managing Director of Verivox Finanzvergleich GmbH, believes that it is entirely understandable that consumers are currently saving money on short-lived goods. “In times of economic uncertainty, it makes sense to concentrate on long-lasting investments such as home modernization and to examine spending on consumer goods,” says the credit expert.
Interest savings increase freedom in uncertain times
When financing purchases, consumers can significantly reduce financing costs. “If you compare the conditions of different financing providers and choose the cheapest loan, you will save several hundred euros, depending on the loan amount and term,” explains Oliver Maier. Especially in economically challenging times, this is an important opportunity to reduce the burden of investments and secure financial flexibility.