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In crown times, credit cards are used more frequently. But plastic money can become a debt trap.
An average of two to three credit cards are in a Swiss wallet. And they are used a lot. Often more than finances allow.
Credit up to CHF 3,000
“It’s increasingly common for a person to have two, three, or even four open credit cards,” says Olivia Nyffeler, who works at Bern’s debt counseling service with people who have racked up a mountain of debt.
Many cannot pay these outstanding bills at all. And since each card provides a loan of 2,000 or even 3,000 francs a month, a larger sum can quickly accumulate.
This also increases the risk of over-indebtedness, the attorney said. “Low-income people have trouble meeting their needs,” he explains. Then comes the credit card bill and puts an additional burden on the family budget.
For essential things
In that case, bills for taxes, health insurance, or food contributions would be deferred. The family budget is even more unbalanced when someone loses their job or has little time to work, as it affects tens of thousands of people in the Corona crisis. Then a new credit card will be available. Even just to buy the essentials.
Nowadays it is relatively easy to get such a card. Recently, for example, the Manor department store turned your customer card into a credit card without being asked: 600,000 customers.
Much leeway for editors
From a debt counseling point of view, the hurdles for a new credit card are generally too low. “It is very problematic for us that consumers can obtain a credit card with relative ease,” says Olivia Nyffeler.
It is true that card providers have to verify creditworthiness when someone applies for a card. However, according to the law, they only have to do this in summary. That leaves some leeway. Also in relation to existing debts.
