In brief

• Germany's overindebted adult population rose for a second year to 7.36 million, about 293,000 more than the year before.
• Higher energy, housing and living costs, combined with a weaker labour market, are the main drivers cited by Creditreform.
• Young adults show the steepest rise, and Berlin and Brandenburg are also seeing more people in debt.

National picture

The number of people in Germany struggling with debt has risen again. According to the new Schuldneratlas published by the credit agency Creditreform, 7.36 million people aged 18 and over are now considered overindebted, roughly 293,000 more than a year earlier, an increase of a little over four percent (Warum immer mehr Menschen in die Schuldenfalle rutschen – tagesschau.de) (Schulden in Deutschland: Jeder zehnte Erwachsene ist überschuldet – DER SPIEGEL). The reference date for the figures was 1 October (Überschuldung in Deutschland: Mehr als jeder zehnte Erwachsene in Deutschland ist überschuldet – ZEIT ONLINE).

Causes

According to Creditreform, the main driver is the rise in living costs, especially energy and housing. Creditreform's research head, Patrik-Ludwig Hantzsch, said the financial situation of private households had deteriorated further. At the same time, the labour market is weakening, which adds pressure on incomes (Hohe Kosten und Arbeitslosigkeit - Etwa jeder zehnte Erwachsene ist überschuldet – Deutschlandfunk). Illness, addiction, accidents and job loss are frequently named as triggers for a financial emergency.

Young adults hit hardest

The rise is particularly pronounced among young adults. The Schuldneratlas reports that the number of overindebted people in this group has grown faster than the average. Experts note that a single reminder letter does not automatically classify someone as overindebted; the agency's rating takes into account several stages, from dunning and collection procedures to seizures and private insolvencies.

Berlin and Brandenburg

Regional broadcaster rbb reports that the number of overindebted people is also rising in Berlin and Brandenburg. The regional breakdown reflects the national trend of higher living costs and a weaker job market.

Where to get help

People facing payment problems can turn to debt counselling services, such as those run by the Diakonie and other social welfare organisations, which offer free advice on restructuring debts.