Germans are accumulating personal debt at a rate nearly double that of their European counterparts.
Germany is grappling with a significant increase in personal debt, according to a 2025 study titled "Banking on Banks" conducted by CRIF, a global information service provider. The study surveyed 6,000 consumers across Germany, France, Italy, Poland, and the United Kingdom.
The findings reveal that eight out of ten people in Germany are worried about their financial future, making them more concerned than consumers in any of the other surveyed countries. This economic insecurity is not unprecedented, as it is widespread in Europe, but Germany's figures are above average, albeit not by large margins.
One factor contributing to this rise in personal debt is the growing popularity of Buy Now Pay Later (BNPL) services. Unlike traditional loans, BNPL loans are usually interest-free, and 20 percent of Germans have used these services, almost doubling the European average for these products. This surge in BNPL usage can be attributed to the rapid expansion of e-commerce and the range of flexible payment options on offer.
In addition to BNPL, Germans have taken out new lines of credit in significant numbers. Fifty-two percent of Germans took out a new line of credit in the past year, compared to a European average of just 38 percent. Furthermore, 29 percent of Germans obtained a new credit card in 2024.
Persistent inflation and higher prices for essentials are pushing more and more Germans to take out loans or defer payments. This inclination towards borrowing, combined with an underlying thriftiness, has led 59 percent of respondents to say they have cut back spending.
The digital transformation has also played a role in this debt surge. The rapid expansion of digital lending platforms has made it easier than ever to access credit in Germany. Nearly 20 percent of Germans now use digital channels for loans, especially for amounts under €2,500.
Frank Schlein, CRIF Germany Managing Director, has stated that this concern has reached deep into the middle of society. The exact statistics and specific reasons for the rise in personal debt among Germans from CRIF's 2025 study are not explicitly available in the provided results. However, related reports and trends suggest that changes in consumer creditworthiness evaluations, shifts in lending patterns, growing financial pressures on consumers, and attitudes towards sustainability and ESG commitments in financial services might indirectly affect lending practices and consumer confidence.
For detailed and precise findings, consulting the full "Banking on Banks" report directly from CRIF or a verified financial analysis source would be necessary.
The surge in personal debt in Germany is not only due to the growing popularity of Buy Now Pay Later services, with 20 percent of Germans using these interest-free loans, almost doubling the European average, but also because of the increased use of digital lending platforms, with nearly 20 percent of Germans now using digital channels for loans. Additionally, concern over personal-finance issues, such as debt management, has reached deep into the middle of German society, as revealed by the "Banking on Banks" study.
