"Finanzen einfach erklärt" mit Daniel Jung Teil 6 - Schulden

Hi everyone! Welcome to the last episode of our series called Finances Simply Explained. The aim of this series is to explain the topic of finance to you. Together with my business partner, the savings bank finance group Hesse-Thüringen, we want to make it possible for you to have free rein in financial decisions. Above all, lack of financial education can lead to debt. And that's exactly what today's video is about. But what are debts anyway? According to Duden, the definition of debt is a sum of money that someone owes to another person. For example, if you buy something on credit and haven't paid yet, you have an open debt. Didn't you know that this is already debt? That's what many people do. Debts don't arise until the warnings flutter into the house. Debts can already arise in simple everyday situations. Whether it is that your girlfriend lends you a few euros so that you can buy a drink at the kiosk, for example, or if you order something online on credit. It becomes more obvious when you take any form of credit. If you don't know what types of credit there are, you can just look it up in the previous video. But back to the topic. When it comes to debts, it is important to know the difference between debt and overdue debt. Debt simply means that you have debts. This is usually not a problem as long as you are able to compare your debts. With overdue debt, the income of the debtor is no longer enough to compare all debts. This is a very difficult situation. Assuming you have 4,000 euros in debt with a monthly interest rate of 1%, you have 1,000 euros in income per month and 950 euros in expenses per month. The expenses now add up to 1% of 4,000 euros, which is 40 euros. This means that you would have to spend 990 euros. And this 990 euros is still in your monthly income. Therefore, you are here in a debt and not in an overdue debt. If you are wondering how it can become an overdue debt, there are various reasons for this. Classic reasons for overdue debt are, for example, job loss or short-time work, failed self-employment, divorce or separation, inherited debts, poverty, a serious illness or an accident, addiction problems such as gambling debts or a death. But far at the top of the list are two more reasons. Lack of financial knowledge and excessive consumption. And that is why it is so important that you watch this video. Apparently harmless and self-evident things such as buying clothes on the Internet without paying immediately can lead to overdue debt. Always be aware that for every order, even if it is still so small, you have to deposit money at some point. And even if it sounds a bit exaggerated, but a small amount also makes a mess. That is why young people are particularly affected by debts these days. According to the Federal Statistical Office, people up to the age of 25 had an average debt of € 8,500 in 2020. Growing up and taking financial responsibility is certainly not easy these days. Subscription contracts such as mobile phone contracts or gym contracts, tempting offers of free bill financing or buying on credit play a major role here. Even the purchase of one's own car or apartment can become a debt trap. I can't say it often enough. To prevent debts, it is important to learn to handle finances responsibly. This means monitoring your income and expenses in detail and weighing up what you can really afford. For example, a household register can help you. There you note exactly what income you have, what monthly fixed costs occur and what budget you then have left after deducting all expenses. I also advise you to save a financial cushion to cover unexpected expenses. For example, with a daily account. Here are a few more tips. Check your account balance regularly. Pay your bills on time. Make sure to keep your monthly budget. Consider all expenses in your household register. Also EC and credit card payments as well as mobile payments. If available, use the dispo credit only in absolute emergencies. It is best to avoid rates and spontaneous purchases. So guys, that's it with this video and unfortunately also with this series of videos. I hope you enjoyed it. The Sparkassen Finanzgruppe Hessen Thüringen and I were able to answer many open questions for you. And as always the tip if you want to continue to take care of your financial education. Take a look at the Sparkassen school service or on the website www.finanzen-mit-daniel-jung.de Here are all videos from this series. As well as bringing you closer to the world of mathematics, I had a lot of fun with this video series to educate you on the topic of finances. I hope you have learned a lot and continue to take care of your financial education. I wish you all the best and maybe we'll see each other again in this format. Until then, take care of your money responsibly. Ciao!