Germany in debt trap: Over five million people affected are fighting!

Germany in debt trap: Over five million people affected are fighting!

More than five million adults in Germany are affected by excessive indebtedness, a problem that not only affects the debtors themselves, but also affects their partners, children and relatives. These alarming figures were published by Prof. Dr. Eva Münster from the University of Witten/Herdecke is discussed in a position paper on over-indebtedness research. Despite the far-reaching consequences, the topic is still neglected in the scientific community. There is little knowledge about the fundamental causes and social effects of over-indebtedness.

Loud bpb.de In 2019, 4.0 million adults in Germany were affected by high levels of over-indebtedness, which represents around 5.8% of the adult population. In the same year, 62,600 applications for consumer bankruptcy were filed with claims totaling 2.66 billion euros. These statistics illustrate the scale of the problem and the need for comprehensive research.

Causes and consequences of over-indebtedness

The main causes of over-indebtedness are varied. Unemployment, illness, addiction or accidents are some of the most common reasons. In addition, uneconomical household management plays a significant role. Each of these causes requires different approaches to solving the problem, which further increases the complexity of the problem. Professor Münster emphasizes that sudden life crises such as serious illnesses or separations can often lead directly to financial difficulties.

The average debt of 142,000 debtors advised was an alarming 28,244 euros in 2019. Adults aged 65 to 70 are particularly affected, accumulating an average of 43,356 euros in debt. The lack of basic data on the number of people affected and the nature of their debt accelerates the need for comprehensive research approaches and deeper analysis.

Demands of the experts

Researchers and experts are calling for greater sharing of data and ideas to fully understand the topic. Basic data about the number of people affected and the different types of debt are missing. Prof. Dr. Münster calls for a comprehensive inventory of existing data and the establishment of a permanent research network. The aim is to reduce the social and health consequences of excessive indebtedness in the long term. Several institutions, including the Institute for Financial Services e. V. (iff), the RheinMain University of Applied Sciences and the Kempten University of Applied Sciences, took part in a scoping workshop that was funded by the Volkswagen Foundation. This initiative is intended to create a solid basis for future research projects.

The need to address more intensively the influence of social pressure and shame on excessive indebtedness remains an overdue research topic. In the meantime, many households have no choice but to live in constant fear of financial hardship.