Verivox warns against installment purchases online - Installment loans usually much cheaper - Black Friday installment plans hide costly interest traps for shoppers
Black Friday deals may be enticing, but installment payment options can come with high interest charges. A recent comparison by Verivox highlights significant differences in borrowing costs for the same purchase. Consumers could pay substantially more depending on where they finance their shopping. For a €2,500 purchase repaid over three years, interest rates vary widely. Otto charges the highest rate at 18.92%, adding €729 in interest. Amazon and MMS E-Commerce also impose high rates of 10.01% and 10.90%, respectively. The comparison reveals a clear gap in borrowing costs during Black Friday promotions. A €2,500 purchase could cost €729 in interest at Otto but only €255 through a Verivox personal loan. Authorities continue to monitor the impact of high-interest installment plans on household debt levels.
