SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

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: 19 September 2024

» Published: 02 August 2024

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

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
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

United Kingdom to Investigate Apple and Google
1 MIN READ

United Kingdom to Investigate Apple and Google

The Price of Timber Continues to Rise
1 MIN READ

The Price of Timber Continues to Rise

Norwegian interest rate remains unchanged
1 MIN READ

Norwegian interest rate remains unchanged

Investor increases dividend more than expected
1 MIN READ

Investor increases dividend more than expected

Sandvik CEO: US tariffs would affect us
2 MIN READ

Sandvik CEO: US tariffs would affect us

The Stockholm Stock Exchange Rises
1 MIN READ

The Stockholm Stock Exchange Rises

The Coffee Price the Highest in 50 Years
1 MIN READ

The Coffee Price the Highest in 50 Years

Swedbank distributes 24.6 billion to its owners
3 MIN READ

Swedbank distributes 24.6 billion to its owners

More online Christmas shopping in November than in December
1 MIN READ

More online Christmas shopping in November than in December

Sharp Increase in Bankruptcies
1 MIN READ

Sharp Increase in Bankruptcies

Upwards on Asian Stock Exchanges
1 MIN READ

Upwards on Asian Stock Exchanges

Netflix surged on the stock exchange in New York
1 MIN READ

Netflix surged on the stock exchange in New York

The Head of Essity is Leaving the Company
1 MIN READ

The Head of Essity is Leaving the Company

Swedbank gives more to its owners
1 MIN READ

Swedbank gives more to its owners

Musk questions Trump's AI investment
1 MIN READ

Musk questions Trump's AI investment

Volvo Cars: Not Worried About New US Rules
1 MIN READ

Volvo Cars: Not Worried About New US Rules

Volkswagen wants to sell large stake in Traton
1 MIN READ

Volkswagen wants to sell large stake in Traton

It drives interest in battery metals
2 MIN READ

It drives interest in battery metals

"We're Turning Over Every Stone"
2 MIN READ

"We're Turning Over Every Stone"

ECB Chief: We Must Prepare for Tariffs
1 MIN READ

ECB Chief: We Must Prepare for Tariffs