A recent study by Schufa reveals a notable increase in the use of small loans, particularly among older demographics in Germany. Nearly half of all new installment loans taken are for amounts under €1,000, with a 14% rise in new contracts in 2023. The trend has shifted from a youth-centric phenomenon, with significant uptake seen in the 35-49 age group. Despite rising interest rates leading to higher loans costs, the overall credit system remains stable, although consumer advocates warn against the risks of overspending and suggest caution with ‘Buy Now – Pay Later’ options.