Situation exacerbated

More and more people need debt counseling

Unemployment and a drop in income have always been the most common reasons for over-indebtedness.(Bild: Shisu_ka - stock.adobe.com)

Last year, 16,621 people across Austria took advantage of initial debt counseling. The total number of people who needed support also increased in 2024: There were 61,599 people in total - an increase of 1.8 percent compared to the previous year and therefore the highest figure since 2018.

Many of the debt advice clients have to get by on very low incomes. "The situation is getting worse: the proportion of people who have at most the minimum subsistence level at their disposal has risen by ten percent in the past two years," says Clemens Mitterlehner, Managing Director of ASB Schuldnerberatungen GmbH.

Income often at subsistence level
36.2% of all people who sought state-recognized debt advice for the first time in 2024 had an income of no more than the minimum subsistence level. Orientation: In 2024, the basic amount of the minimum subsistence level that cannot be seized was 1217 euros.

Reasons for over-indebtedness
During the initial consultation, the reasons for over-indebtedness are determined. These include:

• Unemployment and deterioration in income have always been the most common reason for over-indebtedness.
• The second most common reason for over-indebtedness (21.5 percent) is money management, which is linked to a lack of financial education.
• Former self-employment comes in third place with 18.4 percent. Women are significantly more frequently affected by the reasons for over-indebtedness divorce and separation (14.4 percent women, ten percent men).

Since 2021, there has been an option to reduce debt within three years under certain conditions. For private individuals, however, this option is limited until July 2026.