Why money is running out

Who is particularly vulnerable to the debt trap?

(Bild: stock.adobe.com - Wayhome Studio)

Lack of budget planning or unemployment are the main reasons why people are increasingly running out of money. Every second client who seeks help from debt counseling is more than 32,950 euros in the red. But who is particularly often hit by the debt trap?

"Right across the board," is how Thomas Berghuber, Managing Director of Schuldnerberatung OÖ, answers the question of who is particularly at risk of debt. Last year, the number of initial consultations literally exploded - 2041 such consultations took place in Upper Austria.

Financial problems before the 20th birthday
A total of 6234 files were processed by the Upper Austrian debt counseling service in 2023. A look at the figures shows that 27 percent of those seeking advice were under 30 years old. For many, their financial problems began before the age of 20. Another 27 percent were between 31 and 40 years old.

Debt problems usually have several causes. According to Berghuber, however, a lack of problem awareness and self-confidence prevents many of those affected from taking the right steps in good time. This also explains the sometimes enormous amounts of debt. Every second client has more than 32,950 euros in debt. "Experience shows that more than half of this is accounted for by interest and collection costs. Only with free, professional advice do many people have a chance of escaping the debt spiral," says the debt advice service.

Over 200,000 euros in debt
Over 100 Upper Austrians had to struggle with debts of over 200,000 euros last year. In addition to a lack of budget planning, unemployment, accident, illness, addiction or death of relatives are often the causes.