Causes of over-indebtedness in Bremerhaven and Bremen: expert analysis. Economic structures and social inequality as main factors.

Causes of over-indebtedness in Bremerhaven and Bremen: expert analysis. Economic structures and social inequality as main factors.

According to a report from www.butenunbinnen.de, the debtor rate in Bremerhaven is particularly high, and experts are not surprised. Unemployment, poverty and health restrictions in particular lead to financial difficulties in the region. These problems result from economic structural reasons, such as the decline of the shipyards and fishing industries and the withdrawal of the Americans in the 1990s. New jobs often attract commuters from surrounding areas rather than supporting the local population. When it comes to health, the slogan “Poverty makes you sick – illness makes you poor” plays an important role, as health problems lead to lower income and thus to a higher risk of over-indebtedness. In Bremen, the districts with high social benefit rates are particularly affected by financial difficulties. In order to improve the situation, politicians must strengthen the income situation of citizens. Inflation has worsened the financial situation of many people, and measures such as increasing the minimum wage and citizens' benefits have not been sufficient to counteract this. The introduction of basic child benefits and the avoidance of reductions in benefits are possible ways to reduce excessive indebtedness in the region. It is likely to continue to be a sensitive issue over the next few years as high inflation continues to worsen the financial situation of many people.