Creditreform’s latest survey shows that the number of households that are considered over-indebted has increased compared to 2016. A total of 65,000 more people increase the number of over-indebted people to 6.91 million. Those who are over-indebted are no longer able to cover their current expenses with current income.

Regional concentration

Regional concentration

The Creditreform Debtor Atlas shows that there are quite regional concentrations. The three cities with the largest number of over-indebted households are all three in North Rhine-Westphalia.

It is frightening that, despite the booming economy in Germany, more than ten percent of adults are considered to be over-indebted in the second year in a row.

Dfter all, Berlin still has a quota of 12.63 percent. The positive tail light forms Bavaria with 7.47 percent, penultimate is Baden-Württemberg with 8.31 percent behind Thuringia (9.25%).

Who is over-indebted?

First of all, Creditreform’s analysis was of gender distinction. With 4.23 million men, the average debt burden is 35,200 USD. With an average of 24,700 USD, 2.67 million women are over-indebted.

Broken down by age group, most debtors are between the ages of 30 and 39. Here are 1.92 million people. The increase was most dramatic in the over-70s. In this age group, there was an increase of 11.5 percent over the previous year. After all, in this group 190,000 people can no longer meet their financial obligations. One of the causes of seniors Creditreform suspects in the low pensions.

What are the reasons for over-indebtedness?

What are the reasons for over-indebtedness?

According to Creditreform, there are five main reasons that account for 67.6 percent of over-indebtedness cases.

  • Unemployment at 20.2 percent
  • Illness, accident, addiction with 15.3 percent
  • Separation, divorce or death of the partner with 12.8 percent
  • Inefficient housekeeping with 10.9 percent
  • Economic failure with a self-employed activity with 8.4 percent

Other reasons include consumption. High-quality foods or cost-intensive hobbies also contribute to over-indebtedness. The Debtor Atlas names a group that is particularly noticeable in this context, the “so-and-so” strategists. This group of people does not want to lose its affiliation with the middle class and, despite lower income, maintains its current lifestyle, financed by credit.

Rising over-indebtedness in good economic situation?

What should actually be a contradiction can also be the cause. Stable jobs often lead to credit-financed purchases going beyond what is actually feasible. “Inefficient housekeeping” as a reason for over-indebtedness has increased since 2008 by 13 percent. The increase in the causes of “illness, accident and addiction” is even more dramatic. Here the quota rose by 39 percent.