The debts at Kronofogden continue to grow rapidly, as well as the number of people in debt. New figures from Kronofogden show that the debt mountain has grown by 19 billion since last year, reaching 138 billion kronor, an increase of 16%.
National Enforcement Officer, Fredrik Rosengren, points to the recent years’ grim economic situation as a contributing factor. “This is both worrisome and serious. It has been a few years of tough economic conditions, with rising prices and interest rate hikes. The increase in debts clearly shows that Swedish households are struggling to make ends meet, and more and more are having trouble paying their bills,” says Rosengren.
At the same time as the debt mountain rises, more and more people are ending up at Kronofogden. At the turn of the year, there was an increase of 20,000 people in a year, bringing the total number of people with debts at the agency to 436,996. The median debt has also increased, now standing at 85,200 kronor.
“More people are accumulating larger debts, and it is an alarming trend. It is important to act quickly if you cannot pay a bill. By immediately contacting the person you owe money to, you can try to find a solution and avoid the debt being registered with us,” says Davor Vuleta, a private financial spokesperson at Kronofogden.
Looking at age groups, there is a significant increase among people in the middle of adulthood. “It is an age when one generally has high expenses; perhaps taking out loans for housing and having underage children. When interest rates rise and prices for things like food and fuel increase, many struggle to make ends meet, which can lead to payment problems,” says Davor Vuleta.
For individuals aged 35-44, the debt amount is nearly 32 billion, an increase of 25% from the previous year.
This alarming trend of increasing debts and financial struggles among Swedish households highlights the urgent need for financial education, support, and intervention to prevent further economic hardships and societal consequences. It is crucial for individuals to seek help and resources to manage their finances effectively and avoid falling into the cycle of debt and financial instability.