Young people in SH: Debt trap due to Buy now, pay later”!

Young people in SH: Debt trap due to Buy now, pay later”!

The indebtedness of young people is an alarming issue in Schleswig-Holstein. Current reports show that around a third of clients in debt counseling are young people. This development is significantly influenced by “buy now, pay later” models from providers such as Paypal and Klarna. These payment options not only lead to financial constraints but also a major debt problem among young people.

What is particularly striking is that a third of clients in Schleswig-Holstein are between 20 and 35 years old. Almost half of them can be attributed to excessive indebtedness due to online shopping. Anouschka Haalck, an experienced debt advisor, emphasizes the immense importance of money knowledge in order to prevent debts from arising. In a simulation game at the Schleusen Community School in Brunsbüttel, students simulated what it is like to deal with debts of over 500 euros per month.

The risk of “buy now, pay later” offers

The dangerous simplicity of buy now, pay later offers often leads to consumers losing track of their spending. Providers such as Klarna and Paypal allow you to pay the purchase price either immediately or up to 30 days later. This model essentially represents a loan, which many consumers are not aware of. In addition, these payments may be extended under certain circumstances, allowing the debt to continue to accumulate.

An additional problem is late payments. These not only damage your Schufa score, but can also lead to high costs and interest. The consumer advice center warns urgently about the possible effects of these payment systems and points out that many previously ill-considered purchases can quickly lead to a dangerous financial situation.

Consumer education as a countermeasure

In order to counteract the increase in debt, consumer education is actively promoted in Schleswig-Holstein. Financial knowledge is part of the curriculum in many schools, and 18 schools are designated as “consumer schools.” These educational institutions help young people learn how to handle money and dedicate themselves responsibly to a financial future. Haalck also recommends talking openly about money and debt problems to raise awareness.

There are a total of 47 free debt counseling centers in Schleswig-Holstein for those affected. These facilities offer open consultation hours to support people in difficult financial situations and offer advice on how to manage their debt.

Given the dangers of the “buy now, pay later” principle, consumers should always keep an eye on their budget planning. It is advisable to activate notifications about payment deadlines in the associated apps and only use installment financing for important purchases. If you have serious financial difficulties, we strongly advise you to take advantage of the free debt advice in Schleswig-Holstein. Prevention and early advice are the key to avoiding a debt trap.

The wave of indebtedness among young people in Schleswig-Holstein highlights the urgency of strengthening financial literacy and finding systematic solutions to protect young consumers from serious financial problems. Those interested can find further information at NDR and Consumer advice center.