Friday, November 11, 2016

Debt – one in Ten is insolvent – Frankfurter Rundschau

10. November 2016

pledge collector in a subway Station: most Common cause of a strong over-Indebtedness is unemployment. It can lead to a spiral to the bottom. Photo: Reuters

The number of over-indebted people has increased significantly, data show that the debt collection company Creditreform. One in Ten could not use loans, at least temporarily.

Despite falling unemployment, rising wages, low interest rates and a strong economy, the indebtedness of private households in Germany for the third Time in a row, risen noticeably. According to the debt collection company Creditreform were on 1. October of this year in debt nationwide, 6.8 million persons of full age. The 131 000 more than twelve months previously. The indebtedness ratio rose for the first time since 2008, about the Ten percent mark at 10.06 percent. The average Indebtedness amounted to nearly 35 000 euros per Person.

this is not true, However, this on all the regions equally. Differences arise in the extent of the debt, and with a view to the debt-affected age groups. The credit reform published debtor Atlas 2016 shows that only the number of heavily-indebted individuals increased (approximately 220 000), while cases with “low indebtedness of intensity,” went up to almost 90 000.

As a heavily over-indebted people are, if you are kicked because of their debts legally (such as through an affidavit or a private insolvency), and, moreover, in spite of several reminders from different creditors repeated payment obligations are not able to meet (“sustainable Payment failure”). A low level of Indebtedness of the speech is, if it does not have multiple bills to pay, an entry in the official debtors of the directories exists but not (yet).

striking are large regional differences. While Bayern has a ratio of 7.35 percent of the lowest indebtedness rate of all the provinces, it is in Bremen, Germany with 14 percent, almost twice as high. A low over-Indebtedness have Baden-Württemberg (8,34%), Thuringia (9,24) and Saxony (9,89). In the midfield, between ten and eleven per cent of Hesse, Rhineland-Palatinate, Brandenburg, Saxony, lower Saxony, Mecklenburg-Western Pomerania, Hamburg and Schleswig-Holstein. At the lower end of the Saarland, North Rhine-Westphalia, Saxony-Anhalt, Berlin and the city-state of Bremen.

qualify for local variations and developments of that information. Compared to 2015, namely Berlin sank with a loss of 0.24 percentage points, to 12,74 per cent of over-indebted private individuals, Bremen (minus 0,07 point) and the Saarland (minus 0.02 to 11,31%) the only countries where over-Indebtedness. In contrast, Baden-Württemberg (plus 0.25 points), Bavaria and Saxony (plus 0,24 points), and Thuringia (plus 0,16) recorded the strongest increase. The same is true for the local level: Halle / Saale about the trend with a Minus was recorded, contrary to the Country by 0.28 points to 16.85 percent, Germany’s third-highest decline of all the 402 municipalities. Only in Cuxhaven, Germany and Braunschweig, the Indebtedness decreased even more.

The Ruhr region, in turn, is referred to in the debtor’s Atlas as a “problem child”. And not just because the city of Herne, Germany had to cope with in the long-term compared to 2004 is 4.86 points to 17,61 per cent, the highest increase nationwide. Also Wuppertal with an over-indebtedness share of 18.08 percent, Gelsenkirchen (17,67%) Duisburg (16,64), Dortmund (14,46), and food (13,59) are significantly above the average.

the indebtedness differs from the development in the different age groups from each other: In the group of under 30-Year-olds, the over-Indebtedness declined in 2013 to 7.4 percent to 1.66 million people, while increasing among the 30 – to 39-Year-old by 9.3 percent to 1.88 million. In this age group, almost one in five over-indebted. By far the highest over-Indebtedness increase of almost 58 percent compared with 2013 was recorded by the statisticians in the over 70-Year-old. However, the proportion of over-indebted people in this age group at under two percent.

The most common, if also a sharp decline in cause of over-Indebtedness, unemployment, 1.28 million of the nationwide 6.85 million cases main. 2009 1.76 million operating surplus were still start-UPS to the loss of employment attributable to. Other causes include disease, accidents, problems, divorce, death of a partner, failed self-employment and inefficient financial management.

plays A Central role in all of this, the Trend to income drift, as the authors of the debtor-Atlas highlight: the “polarization of Income and over-Indebtedness can be considered as two sides of the same coin”. In a similar vein, an analysis of the Federal Statistical office, in July of this year. It says: “The main trigger of over-Indebtedness are largely outside the control of the over-Indebted.”


No comments:

Post a Comment