The interest on the revolving credit is flexible and is therefore not fixed.
This will therefore fluctuate over time. Fortunately there is a legally established standard of a maximum interest rate, so the interest on the revolving credit will never be higher than that interest rate. But that is of course no guarantee that the revolving credit will always remain cheap.
The interest rate of the revolving credit depends on the financial situation in the European Company and economic growth. Developments such as inflation and the interest rate of the Eurabank have a direct influence on how much interest the revolving credit providers will use. In the year 2019 this is a good thing: inflation is below the norm, and because the ECB wants to stimulate borrowing, the interest is very low.
You can therefore find a revolving credit around five percent. That is a lot lower than, for example, what you pay in interest if you are in the red or if you use your credit card. Finding a cheap revolving credit is therefore not very difficult.
Moreover, you can also reschedule your revolving credit if you find a cheaper provider than where you now have your revolving credit. This is usually without extra costs and will save you a lot of money every month.
Despite the usually very low interest rate on the revolving credit, it is true that the number of people taking out a revolving credit is declining. That in turn has more to do with the number of people who simply have less income due to the credit crisis and the associated wave of recession in recent years. There are simply fewer people who can pay the monthly charges and therefore switch to a personal loan, for example, which can often be a lot cheaper.
Also, the current low interest rate that many lenders offer does not mean that interest rates will always remain low. The interest on the revolving credit will rise again at some point. It is possible that the revolving credit is a lot more expensive and unaffordable for many people. This will happen in particular if inflation increases, because then the ECB will respond by raising interest rates and the private banks will go along with it.
Because if the ECB raises interest rates, it will ultimately also be a lot more expensive for the banks to get money. They will then raise the interest on the savings in order to encourage people to start saving more and to borrow less.
Cheapest revolving credit
Many people simply take out the first continuous credit, but if you look a little further and compare the providers, you can save many thousands of euros on an annual basis. It inly the large banks that charge high interest rates for a revolving credit, while newcomers or other lenders can be much cheaper.