Stricter credit rules from November: Protection against over-indebtedness!

Stricter credit rules from November: Protection against over-indebtedness!

From November 20, 2025, new regulations for small and short-term loans of up to 200 euros will come into force in Germany. According to SWR, the focus is particularly on protecting low-income households from over-indebtedness and improving credit conditions. These new regulations stipulate that a credit check is required even for small amounts. This is supported by BaFin, which warned that many consumers could become over-indebted through offers such as “buy now, pay later”.

The number of new installment loans taken out in Germany has risen sharply in recent years. Last year, over 10 million new installment loans were taken out, which represents a significant increase compared to five years previously (6.7 million). More and more consumers are using small loans, especially for small purchases, with almost 50% of loans falling under 1,000 euros. The total number of current loans increased from 17.6 million to 19.6 million.

A look at the debt situation

The situation of over-indebtedness in Germany is alarming. According to current estimates, around 5.56 million consumers are considered over-indebted. This corresponds to an over-indebtedness rate of 8.09 percent for those over 18 years old. The problem is particularly severe in cities like Bremen, where the rate is almost 12 percent. The definition of over-indebtedness includes the inability to meet long-term payment obligations without having access to assets or credit options. A way out of this precarious situation can be personal bankruptcy.

The planned changes from November 20, 2025 are part of the new EU consumer credit directive, which must also be implemented in Germany. This directive stipulates that lenders must check the creditworthiness of applicants when granting small and short-term loans, which is particularly beneficial for protecting low-income households. This is expected to help address rising debt issues and provide consumers with clearer information about borrowing costs.

Important dates in November 2025

In addition to the changes in the credit system, there are also numerous cultural and social events on the program in Germany in November. On November 9th, Reichspogromnacht is commemorated and various events take place in Rhineland-Palatinate. St. Martin's Day on November 11th heralds lantern parades, while the Culture Pass for young people is valid until December 31st, 2025 and must be used by November 30th, 2025.

Christmas markets open from November 21st in Rhineland-Palatinate and from November 18th in Baden-Württemberg. Consumers can also look forward to Black Friday on November 28th, with consumer advocates warning of possible price manipulation. Other changes include the price increase of the streaming platform Spotify, which will be between 1 and 4 euros for premium subscriptions from November. Deutsche Telekom is also planning to increase prices for existing customers on outdated landline tariffs from November.

Overall, it can be seen that the month of November is not only characterized by important social events, but also brings with it significant changes in the credit system, which present both challenges and opportunities for many consumers.