Debts are growing - "we have warned about this"

More and more Swedes are having trouble paying their bills, shows new statistics from the Enforcement Authority. In just two years, the debt amount has increased by 70 percent. We have been warning about this for several years, says Davor Vuleta, private economist spokesperson at the Enforcement Authority.

» Updated: August 28 2024

» Published: August 26 2024

Debts are growing - "we have warned about this"
Photo: Anders Humlebo

During the first half of 2024, the authority received more than 676,000 applications for payment orders – i.e. claims for unpaid invoices, bills, and loan instalments.

This is an increase of eleven percent compared to the same period last year. Over two years, the number has increased by 24 percent.

We have been warning about this for several years, both that the number of claims and the debt amount are increasing, says Davor Vuleta at the Enforcement Authority.

During the first six months of the year, the total amount of claims has risen to 18.4 billion kronor – an increase of 70 percent over two years.

The amounts have increased in all age groups, but most among those over 65.

Over two years, the amount has doubled, and there are explanations for this. They cannot increase their income, pensions have not developed as quickly as, for example, food prices, while inflation and interest rates have risen.

"A chain reaction"

According to Davor Vuleta, it is, on the other hand, gratifying that the total debt amount is holding steady at around the same level for the youngest, 18-25 years old.

We want to prevent people from starting their lives with a payment remark.

Besides affecting individuals, unpaid debts also hit companies that miss out on payments.

When more and more companies do not get paid, there is a risk of a negative chain reaction. There are small businesses that are dependent on these funds or a small landlord who is dependent on rents.

The entire chain means that there is less purchasing power in society, he adds.

"Will take time"

In recent years, tough economic conditions have led more people to live beyond their means, and it will take time before debt levels decrease.

Even if things get a little better in society, we at the Enforcement Authority will not see it yet. It takes time before it turns around for us. We will see a small increase until 2024 and then hope that it decreases again.

How can one then reverse this negative trend? Partly, the individual must take greater responsibility for their economy, and partly, companies that provide loans and credits must take their responsibility and conduct better credit checks.

We cannot continue as if we were not in an economic crisis, says Davor Vuleta.

Corrected: In an earlier version, there was an error regarding the total debt amount.

Tags

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

More news

Nintendo Unveils Details on Upcoming
1 MIN READ

Nintendo Unveils Details on Upcoming Switch 2 Console Today

Northvolt Ends US Bankruptcy Process,
1 MIN READ

Northvolt Ends US Bankruptcy Process, Secures Jobs for 1700 Employees

FI Warns Housing Association Fees
1 MIN READ

FI Warns Housing Association Fees May Keep Rising Due to Loan Costs

Volvo Cars Sees 10 Percent
1 MIN READ

Volvo Cars Sees 10 Percent Drop in March Sales, Electric Models Hit Hard

Stockholm Stocks Slide as Tariff
2 MIN READ

Stockholm Stocks Slide as Tariff Fears Hit Dustin Hard

Genre image
1 MIN READ

Systemair CEO Roland Kasper Steps Down After a Decade

Dustin Announces 1.25 Billion Kronor
1 MIN READ

Dustin Announces 1.25 Billion Kronor Boost to Strengthen Finances

Folksam Divests Tesla Shares Over
2 MIN READ

Folksam Divests Tesla Shares Over Swedish Labor Dispute

Trump Set to Announce New
2 MIN READ

Trump Set to Announce New Tariffs as Global Markets Brace

Stockholm Stock Exchange Faces Decline
1 MIN READ

Stockholm Stock Exchange Faces Decline as Futures Point Downward

Trump's Tariffs Predicted to Slow
1 MIN READ

Trump's Tariffs Predicted to Slow Global Economy Growth

Construction Sector Sees Modest Growth
1 MIN READ

Construction Sector Sees Modest Growth with Housing and Government Boost

Asian Markets Show Mixed Reactions
1 MIN READ

Asian Markets Show Mixed Reactions Ahead of Trump's Tariff News

Sweden's Housing Market Faces Uncertainty
2 MIN READ

Sweden's Housing Market Faces Uncertainty as Interest Rate Fears Loom

Motorhome Registrations Surge 59 Percent
1 MIN READ

Motorhome Registrations Surge 59 Percent in 2025

Wall Street Closes Mostly Up
1 MIN READ

Wall Street Closes Mostly Up After Volatile Day

Swedish Paper Industry Secures Two-Year
1 MIN READ

Swedish Paper Industry Secures Two-Year Wage Agreement

Trump's New Tariffs on Imports
1 MIN READ

Trump's New Tariffs on Imports Set to Take Effect Today

Sweden to Acquire C-390 Transport
1 MIN READ

Sweden to Acquire C-390 Transport Aircraft in Joint Deal with EU Partners

Finland Shuts Down Last Coal
1 MIN READ

Finland Shuts Down Last Coal Plant, Slashing Emissions by 50 Percent

Volvo and Major Automakers Fined
1 MIN READ

Volvo and Major Automakers Fined 458 Million Euros for Cartel Involvement

Ericsson Drops Diversity Language from
2 MIN READ

Ericsson Drops Diversity Language from Annual Report After US Pressure

Saab and H&M Lead Gains
2 MIN READ

Saab and H&M Lead Gains as Stockholm Stocks Rebound

Gunvor Faces 42 Percent Profit
1 MIN READ

Gunvor Faces 42 Percent Profit Drop in 2024 Despite Revenue Boost

Hooters Files for Bankruptcy, Plans
1 MIN READ

Hooters Files for Bankruptcy, Plans to Sell Company-Owned Locations

Eurozone Unemployment Drops to 6.1
1 MIN READ

Eurozone Unemployment Drops to 6.1 Percent in February

Eurozone Inflation Drop Fuels Hopes
2 MIN READ

Eurozone Inflation Drop Fuels Hopes for ECB Rate Cuts

Swedish Central Bank Boosts Dollar
1 MIN READ

Swedish Central Bank Boosts Dollar Holdings in Reserve Shift

Central Bank Deputy Predicts Inflation
1 MIN READ

Central Bank Deputy Predicts Inflation Easing in Sweden

Tesla Faces Significant Decline in
1 MIN READ

Tesla Faces Significant Decline in Swedish Car Registrations

Sweden's New Industrial Deal Sets
3 MIN READ

Sweden's New Industrial Deal Sets Wage Growth for 2025-2027

Snus Delivery Strike Averted as
1 MIN READ

Snus Delivery Strike Averted as Union Reaches Agreement

Swedish Manufacturing Gains Momentum as
2 MIN READ

Swedish Manufacturing Gains Momentum as Eurozone Shows Positive Trends

Positive Outlook for Harvest Season
1 MIN READ

Positive Outlook for Harvest Season Despite Challenges Ahead

Sweden's New Industrial Agreement Brings
2 MIN READ

Sweden's New Industrial Agreement Brings Stability in Uncertain Times

Stockholm Stocks Rebound with Global
2 MIN READ

Stockholm Stocks Rebound with Global Markets as Key Shares Rise

Gold Prices Hit Record High
1 MIN READ

Gold Prices Hit Record High as Tariff Decision Looms

Australian Central Bank Holds Rates
1 MIN READ

Australian Central Bank Holds Rates Steady, Signals Caution on Inflation

Bankruptcies Rise Again with Hotels
1 MIN READ

Bankruptcies Rise Again with Hotels and Restaurants Hit Hardest

Asian Markets Rebound as Investors
1 MIN READ

Asian Markets Rebound as Investors Await Tariff News