5.65 million adults in debt in Germany: A financial expert warns of increasing debt cases and explains the causes

5.65 million adults in debt in Germany: A financial expert warns of increasing debt cases and explains the causes

According to a report by www.faz.net, around 5.65 million adults in Germany are considered to be in debt. Roman Schlag, debt counseling consultant at Caritas, warns of debt traps and explains why pensioners are increasingly affected by debt.

The increasing demand for debt advice indicates the increased cost of living. Even those who were previously financially stable are now seeking advice. Over-indebtedness occurs when there is not enough money left for electricity, housing and living expenses after paying monthly obligations.

As a financial expert, I can say that high levels of debt can lead to bankruptcies on an individual level. Large numbers of over-indebted citizens can also put a strain on the economy and the financial market as a whole. An increasing number of over-indebted pensioners could lead to an increase in poverty in old age. This in turn would require increased government support and put a strain on social systems.

This development could also have an impact on consumption, as over-indebted people have less money available to buy goods and services. The creditworthiness of this population would be affected, which in turn could impact lending and the consumer market.

It is therefore important that the government and financial institutions take measures to contain the risks of debt and support citizens in financial difficulties.

As a financial expert, I strongly advise that the government and financial institutions take measures to curb the risks of debt and support citizens in financial difficulties.