When they have finished school and are in training, they regularly earn money and it is also a lot in relation to the pocket money that they have received from their parents so far, but the banks’ training allowance is usually not enough to provide a loan available for trainees.
The loan for trainees is usually only granted if a solvent guarantee can be included in the contract. The banks only grant loans for trainees without guarantors if the amounts involved are smaller, for example for the purchase of a smartphone or a laptop.
Credit for apprentices – what to consider
However, taking out credit during your apprenticeship does not only mean that it is easy to meet consumption requirements in this way, it also means entering into commitments with the first “earned” money at a young age, which must then be fulfilled over a certain period of time. Loans during training should never be taken lightly, because it can quickly happen that you get into debt at a young age, because there is not enough money to meet all your obligations.
If you believe the statistics, the risk of debt among adolescents is particularly great because they often lack experience in dealing with money and financial obligations. Credit during training can be important if, for example, the driver’s license is to be obtained or the first small car is acquired after passing the driver’s license in order to better reach the job. However, young people should seek advice from their parents or other adults if they take out a loan despite their education.
If trainees are still living in their parents’ home, they often have the entire training allowance at their disposal, only a few have to hand over “allowance” at home. This quickly tempts you to live above the odds if you have not learned to handle money properly. In addition, it should also be borne in mind that although many young people have an apprenticeship position where they are guaranteed remuneration during their apprenticeship, only a few have a guarantee that they will be taken on by the employer after completing their apprenticeship.
Anyone taking out credit during training should make sure that the term is chosen so that the loan is paid off when the training is complete and a longer term is only to be chosen if a job is also secure after the training, the credit with training is therefore a double-edged issue that also harbors dangers that should not be underestimated.
In the past, young people had the problem that they often had to either join the federal government or do their community service right after completing their training. Loan in community service was just as difficult to obtain because community service only provided a secure income for a short period of time.
Today it is different, after the end of compulsory military service, young people voluntarily decide to go to the federal government and there they are paid accordingly in their basic training. Anyone who voluntarily does his or her community service will also be paid, but will only get a loan with a solvent guarantee, because after the community service the professional path is uncertain.
When training costs money
Not every apprenticeship is a state-sponsored apprenticeship. There are a number of professions that can only be completed in private schools. If training costs a lot of money, a loan for training can be the solution. For example, if you want to become a pilot. This training costs up to 100,000 USD and must be paid out of one’s own pocket. But who has 100,000 USD at a young age when he hasn’t just inherited them?
In any case, an apprenticeship loan is always an investment in the future, and if there is no other way to finance an expensive apprenticeship, the loan is a good choice. Often, these loans are not paid in one amount, but in monthly installments during the training, and the repayment of the loan only begins when the training has been completed.
Take out a loan during the trial period
Young people who have completed their training, if they are lucky, get a permanent contract from the training company, but it always includes a trial period. Taking out a loan during the trial period is again a problem because the employment relationship is not secure as long as the trial period is running. The chances of getting a loan despite the probationary period increase if a solvent guarantor is included in the contract who can prove a regular income from a permanent position. Credit during the trial period is therefore not entirely impossible, because if you have a suitable guarantor, you can also take out credit during the trial period.
Nevertheless, everyone who wants to make a loan commitment during the trial period should consider that the trial period can also end with the employment relationship not continuing. This then also results in loss of income. You should only apply for a loan if you can easily pay off the installments with less income. Anyone who wants to be on the safe side waits with the loan until the trial period is over.