The number of indebted individuals at the Kronofogden has increased significantly in recent years among both men and women of different ages. Currently, 437,000 people have debts at the Kronofogden. Every fourth of them is so-called perpetual debtors, i.e. they have been indebted and registered with the Kronofogden for at least 20 years.
The number of perpetual debtors has, according to the Kronofogden, increased over the past two years, from 94,350 in 2022 to 97,433 last year.
It is a mixed group with approximately the same high proportion of men as women. However, their background image often differs from other indebted individuals who, to a higher degree, incur loans through active actions, such as car purchases or blank loans, according to Erik Borgström, unit manager, Kronofogden.
Often, they have been through something life-changing, such as a divorce where they had to sell their house and home. Or they have had their own business that went bankrupt. With gradually increasing costs and interest rates, the debt can grow avalanche-like so that they eventually lose control of it, he says.
Rarely debt restructuring
Many of the perpetual debtors could be eligible for consideration for debt restructuring, but do not apply for it, according to Erik Borgström.
It may be due to myths and misconceptions about the requirements for debt restructuring, or guilt and shame. We can inform that the possibility of debt restructuring exists, but they must apply for it themselves, he says.
Prescription is being investigated
Many may not even know that help with applying for debt restructuring is available, for example from the municipalities' budget and debt advisors.
Currently, a government investigation into over-indebtedness is underway, focusing on those with long-term debts. One of the proposals in it is absolute prescription, which means an outer time limit for consumers' obligation to pay a debt.
There is a risk that it will lead to a certain passivity among those who are in debt, at the same time as it would increase the requirements for those who lend money. The issue must be carefully investigated, he says.
Debt restructuring is for those who are so indebted that they cannot pay their debts for many years.
Those who apply for debt restructuring must first have tried everything to pay back their debt. They must have so many debts that it is not considered reasonable that they can pay them back within a reasonable time. The amount of money the debt involves is not defined, what is assessed is the ability to pay it.
Debt restructuring means that you pay parts of your debt according to a payment plan and that you live on a minimum subsistence level for five years - where the rest of the income goes to paying the debt. When the debt restructuring is completed, you should be debt-free.
Source: Kronofogden.
