Background

The Dutch are – or at least were – the heaviest insured people in the world. So where we have a reputation for being cheap, apparently we are even more fearful to be unprepared in case of a calamity. (Partially) True to my roots, I keep a disproportionate amount of funds liquid eager to save on insurance fees. To what extent that makes sense with today’s savings rates I would rather not discuss.

The Germans on the other hand, have a slightly different way of approaching finances. First of all, everybody is registered with Schufa, which registers when you miss a payment. Without Schufa, no loan. Without Schufa, no rental contract etc.

Set-up
Recently I had several longer trips abroad, for all together a substantial amount in travel expenses. My employer has an arrangement that the credit card bill comes at the beginning of the month, so that I can hand in my expense report, get reimbursed, and the credit card bill only comes at the end of the month. Excellent setup if you do not have the expenses paid by the employer directly. However, who has time to always at exactly the beginning of the month to do his expenses? Still, I was fairly early this time. However, if there is a slight delay in the processing of the expenses, you have a problem. Still, foreseeing the potential issue I ensured I had sufficient funds from savings transferred to pay my credit card. A maybe overly careful but brilliant move, so I thought.

Acting out
However, my fixed expenses started to come in on day 1, as did the credit card bill, whereas my salary came in on day 2. Missed the credit card bill by less than 200 Euro.
Interesting what followed:
1. On day 3,Thursday, the credit card payment was rescinded.
2. The next day I noticed the mishap, and wrote the credit card company where to transfer the money since it was not indicated on their website FAQ.
3. On Monday I received a call from my bank, inviting me for a conversation because of my “multiple missing of payments despite my generous (sic) income”.
4. On Tuesday I received a standard e-mail from the credit card with payment instructions and a threat of unnamed fines.
5. On Wednesday I received an e-mail answer from the credit card to my question with about the same content.
6. On Thursday I received an old-fashioned letter from the bank scolding me about insufficient funds and the threat of unnamed fines.
7. On Friday I received an old-fashioned letter from the credit card company scolding me about insufficient funds and the by now familiar threat of unnamed fines.

Next week I am meeting with the bank about a revolving loan facility.