The number of cases with debt collectors increased by almost ten percent last year. The reason is spelled not completely unexpectedly inflation and electricity prices.
– We have seen a marked increase in debt collection claims, which is consistent with the large cost increases we have seen in society in general, says Fredrik Engström, chairman of Swedish debt collection.
Almost ten million new debt collection claims were registered in the country last year. The number of cases with debt collection companies has continuously increased over time. In recent years, internet shopping and the ability to pay on invoice has been a strong contributing factor, according to the industry organization Swedish Debt Collection.
New groups end up with debt collectors
But last year’s huge increase is more likely to be explained by the strained economic situation in Sweden.
– The risk is great with a worse economic situation, higher interest rates, higher prices and an inflation that may not completely stop that there will be more and more households that will find it difficult to manage to pay on time. At the same time, we believe that many households have the opportunity over time to adjust their finances in such a way that they can catch up, says Fredrik Engström at Swedish Debt Collection.
Although the number of cases has increased, the total debt burden has not followed the same curve. It increased only marginally last year, and even this difference can be explained by the collection claims reaching new groups.
– These are groups that have been hit by high electricity bills or higher living costs but who don’t really have any long-term problems with paying. They have received a debt collection claim but have been able to pay it off quickly. This has meant that the remaining debt will not be as large, says Fredrik Engström.
Fewer to the bailiff
But at the same time as the number of claims is increasing, a lower percentage of these claims go further and end up with the Crown Enforcement Agency. That development may sound positive, but Fredrik Engström says that it should rather be interpreted as worrying.
– This means that the debt collection companies have made the assessment that it is difficult to get paid through the bailiff. And that, in turn, indicates an even worse ability to pay on the part of households, says Fredrik Engström.