Despite the many crises, private debt is at a record low – partly because of government aid. However, experts warn of a hidden trend reversal.
For the fifth time in a row, the number of over-indebted consumers in Germany has fallen: by 233,000 to the lowest level since the evaluations began around 20 years ago. This emerges from the new debtor atlas from the credit agency Creditreform. This decline can be observed nationwide in almost all German districts, cities and age groups, according to the debtor atlas.
The experts at Creditreform see the state’s billion-dollar aid programs, the higher minimum wage and citizens’ money as the reasons: all of this has noticeably relieved the burden on poorer households. They also tended to hold back on spending more often. According to the new figures, eight percent of all adults currently have problems paying their bills regularly. In total there are 5.7 million people affected.
“Ambivalent development”
Debt experts fear that there could soon be more again. They warn of a “hidden trend reversal”: On the one hand, a change in statistics ensured that the numbers looked better than they actually were. On the other hand, we are currently seeing more cases of so-called “soft” over-indebtedness. In such cases, the bailiff has not yet taken action, but several reminders and debt collection procedures are already underway.
Another warning signal is that installment loans are again being used more frequently, even for small amounts. The increased interest rates could also overwhelm people with expiring building financing in the coming months and years. Creditreform therefore speaks of an ambivalent development in debt.