More than seven million adults in Germany cannot pay their bills, according to the latest debtor atlas published on Saturday by the credit agency Creditreform.
That total means one in every ten adults in the country is now dealing with formal over-indebtedness. The new figures show an increase of 293,000 people compared to the previous year, driven by rising living costs, high energy prices, unemployment, and easy online shopping.
Financial hardship affects workers, the elderly, and a growing number of young people under the age of 25. Diakonie Sachsen conducted more than 3,000 debt consultations last year across its 19 offices in the federal state.
Families with children are a large group of those seeking help. Nearly 800 children lived in households affected by debt counseling cases handled by the agency last year, often facing severe hardships such as electricity shutoffs.
“I have some people who have told me that they are trying to keep their heads above water with multiple jobs in order to continue to meet their financial obligations, but then they reach the limit of their endurance,” Sandra Krauß, a debt advisor at Diakonie in Stollberg in the Erzgebirge district, told mdr.de.
The psychological strain of persistent financial trouble frequently manifests as physical symptoms. Counselors report that clients regularly suffer from severe insomnia, heightened aggression, and intense family conflict.
“The most striking symptoms are sleeplessness and health consequences in the direction of the psyche, that people become more aggressive,” Krauß told mdr.de. “More conflict situations arise in the family, and then everyone suffers because their nerves are stretched like wire ropes.”
Easy credit options and digital payment methods contribute heavily to the accumulation of unmanageable bills. Consumers can frequently complete purchases through online installment plans or delayed payment options with minimal friction.
“Out of my view, it is very easy to get into debt,” Cornelia Hansel, a debt advisor with the consumer advice center of Saxony, told mdr.de.
“You can click very easily on installment payment or pay later, and if you cannot pay then, extend it by another 30 days.”
Hansel said that the consumer advice center welcomes stricter rules on small loans and installment agreements to make the obligations clearer to buyers.
State funding in Saxony covers the cost of public debt counseling so that residents do not pay out of pocket. Advisors focus on creating household budgets, negotiating with creditors, and establishing manageable repayment plans to prevent formal court insolvency proceedings.
“Basically, it is always decisive whether there is money with which you can plan any negotiations, then you should look that you get a good concept,” Krauß told mdr.de. “If you can present a good concept to the creditors, the insolvency can often be avoided.”
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