Czechs and loans? We can not save, we prefer to borrow

Czechs and loans? We can not save, we prefer to borrow

As you can see, Czechs are not as bad as they complain about a difficult life. Just look around. Shops and huge shopping centers are always full and people spend, spend and spend again. So where do they get the money? The truth is that a large number of Czechs have enjoyed a seemingly easy life on debt.

It is so terribly simple. There is no need to store yourself and put your money aside. It is not necessary to save money. Lack of funding will simply solve the loan. Just look at the numbers. According to statistics, every Czech repays at least one loan. One-third of Czechs even repay two or more loans. Czechs sometimes think carefully about the loan, but impulsive indebtedness is not uncommon when they see something they must have.

Where did I get the following information? The results of the survey, which took place on January 15-24, conducted by the Public Opinion Research Center (CVVM). 1,068 respondents selected according to the same percentage of selected properties and quotas as age, education, region, gender etc. participated in the research. I was not surprised.

 

Investigation times are gone

Investigation times are gone

There was a time when people were used to saving. They simply put the money aside for the chosen thing until they saved the necessary amount. It was not easy to get a loan, interest rates were high, and they thought long for a possible loan. That will pay today. Taking a loan is much easier for people with lower incomes. And as easy and fast as money borrows, they get into a debt carousel.

The mentality of Czech consumers has changed radically over the past few years. People are increasingly impatient, do not want to wait for anything, and want everything at their best immediately. Purchases on debt are predominantly rash and people often do not read the terms and conditions that they sign upon signing a credit agreement. In this way, Czechs mainly buy white goods and consumer electronics. Probably not very good, do you think?

What do Czechs often take loans for?

  • Consumer Electronics – 30%
  • white goods – 24%
  • car – 22%
  • household equipment – 15%

 

Every third Czech disregards the principles of safe lending

credit loan

That’s not a very positive figure. Fortunately, it only affects people who repay at least one loan. These people borrow often. Initially for purchases, later on installments. From here it is only a step to personal bankruptcy and execution. Such uncontrolled lending of money is a very quick way to financial hell. Is it worth it?

According to experts, the risky borrower immediately according to several features:

  • he takes the loan for anything and for payment of various arrears (eg for energy, telephone)
  • he takes a loan when he has no money
  • borrows also for entertainment and normal consumption
  • it has no restraint to repay three or more loans at a time
  • its creditors mostly include non-banking companies
  • is willing to take a loan to repay another loan

Strangely, lenders are women. Risk debtors are dominated by men versus women. And I would expect men to be more responsible in terms of money. In terms of age, the most reckless people are 35-54 years old. On the other hand, older people over 55 years of age are the least indebted. They still maintain a conservative attitude to loans. Education also has an impact on uncontrolled lending. The higher your education, the less indebted you are. We also find a large proportion of loans for people who live alone and in households with minimal savings.

 

87% of Czechs consider loans to be risky

loans to be risky

How funny, right? On the one hand, we borrow literally as angry, but we know very well that loans are not quite “kosher”. While 87% claim that loans are a risk, 82% nodded that living on debt is absolutely natural nowadays. So I don’t know what to choose from. It reminds me a little of the proverb “that the goat should stay whole and the wolf ate”.

Look at the other numbers, they are just as interesting. 54% of Czechs see no problem in lending money, 45% of Czechs condemn loans. A total of 34% believe that the loan even pays off. The most accepted loans are housing (90%), study (76%), business (74%) and car (64%).

 

As far as repayment is concerned

loan repayment

We are not so bad. Almost half of Czechs (48%) pay off their obligations without any problems, for 10% they do not interfere with the budget. For the remaining 31% it is not so easy and 8% of Czechs pay their debts very difficult or not at all.

I’ve never been good at math. My head is spinning from the numbers and doubled. It seems that we all in fact know that living on debt is not right. And it’s not good to have more loans at all. On the other hand, it’s nice to buy a new TV, a used car or a modern smartphone without waiting, so we’ll just apologize. Everyone does so, so it’s normal and completely natural.

63% of Czechs consider the reserve for worse times important. The question is, how many Czechs can boast a really sufficient financial reserve and they could live without income for several months.

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