Many adolescents and young people first dream of getting a driving license for a moped from the age of 16 and one or two years later of having their own car. In addition to the familiar peer pressure and being impressed by their own motorized, mobile pedestal, young people also want to achieve the highest possible standard of living through, for example, a smartphone and their own apartment.
The follow-up costs and hidden costs
The complete package, however, should only be completely independent of the parents. The follow-up costs and the hidden costs are mostly overlooked by young people in their adventurous calculations and plunge into a financial crisis before the age of 18 begins.
Before the age of 20, the insolvency administrator, the debt collector of a debt collection agency, the bailiffs and the landlord, who was angry about the lack of rent, could be at the door! For these reasons, it is practically impossible to get a loan before the age of 18. Even after the age of 18, it is difficult for young people to obtain a loan.
Because just because you are 18 years old does not mean that the necessary maturity and sense of meaning for a loan is usually available. In addition, there is the fact that a loan is not yet affordable for young people in this phase of life because they are still at school or have just started an apprenticeship.
The trap of a loan for young people
It often happens that after successfully completing an apprenticeship, unemployment occurs because the company cannot keep the apprentice for financial reasons. The earnings are, if only brief, and the monthly installments for the repayment of the loan remain. So before taking out a loan for young people, they should think about how the coming months and years will look in terms of professional income and whether this loan can be repaid in a realistic time.
Before you know it, the debt trap has snapped. The consequence of this is a negative Schufa entry and considerable additional costs. The repayment of the loan is the smallest problem! Approving another loan in the future can be very difficult due to a negative Schufa entry.
The offer of the banks
Of course, the banks know about the striving for independence among young people and want to support them in the form of a loan. Therefore, the financial institutions offer a loan for young people with a long term and therefore with very low monthly installments. This keeps the financial burden very low. At the same time, the banks offer young people enormous flexibility.
For example, a loan can be redeemed prematurely or suspended for one or more months in the event of a financial shortage. A loan for young people always carries risks! For this reason, every young borrower is advised to voluntarily take out residual debt insurance. The loan amount increases to the disadvantage of the debtor, but in a financial emergency, for whatever reason, you are optimally secured.