Debt restructuring will increase in 2024, according to the Swedish Enforcement Agency’s forecast. The number of cases, which was a record number last year, is expected to be even higher this year.
– I hope it drops quickly, but it doesn’t look very bright, says Davor Vuleta, personal finance spokesperson at the Swedish Enforcement Agency.
The Swedish economy is in a recession and does not look like it will improve, at least not this year.
The high inflation and increased interest rates affect households with sensitivity to interest rate changes and housing construction. It also affects the labor market, which is expected to weaken in the future. The weak demand showed reduced employment in the fall of 2023. Unemployment is now predicted to rise and reach a peak of 8.5 percent by the end of the year.
And the Bailiff is expected to collect debts from 520,000 people this year. That is an increase of 40,000 from last year (480,000).
According to the Swedish Enforcement Agency’s forecast, it will be even darker in the fall. Among other things, the number of debt restructurings will break records from last year.
“Doesn’t look bright”
– This year we will see a peak in the number of cases sent to the Kronofogden. It will ease a bit and go down in the coming years. But it will take time before we get to the numbers we had in 2020 and 2021, says Davor Vuleta, private finance spokesperson from the Swedish Enforcement Agency.
The number of applications for debt restructuring has increased drastically since 2016 and last year it broke a record – with more than 34,000 cases. In 2024, the figure is expected to rise by 3 percent and then decrease somewhat next year.
– I hope it drops faster, but it doesn’t look very bright.