Got stuck in the summer trap? This is what you do in the fall

More and more Swedes are consuming beyond their means right now. The crash risks coming in the autumn – but it is possible to get the family's economy back on track again.

» Updated:

» Published:

Got stuck in the summer trap? This is what you do in the fall
Photo: Henrik Montgomery/TT

Share this article

For many households, the summer has become something of a cost shock. At the same time as inflation and high interest rates have eroded the household budget, travel, restaurant visits, and entertainment have become significantly more expensive.

Borrowing extra money to have fun during the summer may seem tempting to many. Perhaps one has taken from one's savings to afford the vacation, or bought on credit to be able to take the family to restaurants and amusement parks.

We know that many take loans and credits to vacation, says Davor Vuleta, private economist and spokesperson for the Enforcement Authority.

The most important thing is to make a calculation in advance to see if you can pay after the summer.

More shop on credit

The fact that more people are using credit is shown by figures from the business and credit information company Upplysningscentralen (UC). In July, 52 percent used credit, which can be compared to 45 percent in the summer of 2022.

For those who do not want to end up in debt difficulties in the autumn and winter, it is important to be active, says Davor Vuleta.

The worst thing you can do is to stick your head in the sand. If you can't pay, it's important to contact the one you owe money to. It costs nothing and that way you can avoid the debt growing even larger.

He points out that an invoice of 500 kronor, when it has gone through all the steps with reminder fees, collection claims, interest, and fees, can end up at over 2,000 kronor.

Another tip is to turn to the municipality's debt counseling, which can help find solutions.

Lower the standard

It is also important to sit down with pen and paper and make a traditional budget.

What do I have for income and are there any expenses I can reduce to manage all these commitments? says Davor Vuleta.

The advice is to prioritize rent, electricity, and food. But much else can be reviewed, such as streaming services, mobile subscriptions, and even certain types of goods that are not necessary.

We may have to be prepared to lower our standard a bit and not continue to live as if we were not in economic difficulties, says Davor Vuleta.

Before next summer, the advice is to plan long-term.

If you had to borrow to treat yourself to something this summer, maybe you should start setting aside a few hundred kronor a month for next summer already now if you can.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

FTC Investigates Google and Amazon Over Advertising Practices

FTC Investigates Google and Amazon Over Advertising Practices

US Proposes G7 Tariffs on China and India Over Russian Oil Purchases

US Proposes G7 Tariffs on China and India Over Russian Oil Purchases

Taco Bell Plans Expansion into Sweden with First Stockholm Location

Taco Bell Plans Expansion into Sweden with First Stockholm Location

Russia's Central Bank Makes Smaller Than Expected Interest Rate Cut

Russia's Central Bank Makes Smaller Than Expected Interest Rate Cut

ECB Officials Divided on Future Interest Rate Decisions

ECB Officials Divided on Future Interest Rate Decisions

Klarna CEO Secures Billion-Kronor Loan to Buy Out Co-Owner

Klarna CEO Secures Billion-Kronor Loan to Buy Out Co-Owner

Six Suspects in Consultant Scandal Face Charges After Spain Raid

Six Suspects in Consultant Scandal Face Charges After Spain Raid

Microsoft to Remove Teams from Office Package in EU Agreement

Microsoft to Remove Teams from Office Package in EU Agreement

UK Economy Growth Stagnant in July as GDP Remains Unchanged

UK Economy Growth Stagnant in July as GDP Remains Unchanged

German Inflation Rises to 2.2 Percent in August

German Inflation Rises to 2.2 Percent in August

Stockholm Stock Exchange Rises Amid Global Market Upswing

Stockholm Stock Exchange Rises Amid Global Market Upswing

Insurance Guide: What to Know After Västernorrland Floods

Insurance Guide: What to Know After Västernorrland Floods

Asian Stock Markets Rise on Week's Last Trading Day

Asian Stock Markets Rise on Week's Last Trading Day

Trump Seeks Court Approval to Dismiss Fed Member Before Rate Decision

Trump Seeks Court Approval to Dismiss Fed Member Before Rate Decision

Warner Bros Discovery Surges on Wall Street Amid Paramount Bid Rumors

Warner Bros Discovery Surges on Wall Street Amid Paramount Bid Rumors

US Inflation Matches August Expectations

US Inflation Matches August Expectations

ECB Keeps Interest Rates Steady

ECB Keeps Interest Rates Steady

Novo Nordisk to End Remote Work in 2024

Novo Nordisk to End Remote Work in 2024

Switzerland Suggests Moving Gold Refineries to USA to Lower Tariffs

Switzerland Suggests Moving Gold Refineries to USA to Lower Tariffs

Klarna's Stock Market Debut Attracts Swedish Small Investors

Klarna's Stock Market Debut Attracts Swedish Small Investors