Nov 12, 9:02 PM
Overindebtedness in Germany Reaches 7.36 Million Adults as Costs Rise
A report by credit agency Creditreform points to rising living expenses and industrial job losses as key factors behind the increase.
The number of overindebted adults in Germany rose to 7.36 million as of October 1, according to the Debt Atlas 2026 report published by credit reporting agency Creditreform on Thursday. The total represents an increase of 293,000 individuals, or 4.1 percent, compared to the previous year. As a result, 10.58 percent of the adult population in Germany is now classified as overindebted.
Creditreform cited escalating expenses for housing, energy, and general living costs as primary drivers of the trend, alongside growing friction in the labor market. Patrik-Ludwig Hantzsch, head of economic research at Creditreform, stated that the elimination of well-paid jobs in the industrial sector has increasingly weakened the financial standing of private households.
The report highlights a steep rise in early-stage payment difficulties. Cases involving soft overindebtedness indicators, such as formal payment reminders and debt collection proceedings, grew by 10.1 percent year-on-year to 1.87 million. These early payment disturbances accounted for approximately 59 percent of the total national increase in overindebtedness.
Hantzsch noted that the upward trend in debt cases is directly driven by broader economic pressures. He explained that unaddressed initial payment delays frequently turn into severe financial distress, which becomes permanent once judicial enforcement actions or wage garnishments take effect.
Middle-aged citizens account for the highest concentration of debt cases. The overindebtedness rate reached 17.04 percent among individuals aged 30 to 39, and 16.16 percent for those between 40 and 49. According to Creditreform, financial obligations associated with starting a family, purchasing real estate, and running independent businesses contribute significantly to debt levels in these age groups. Among young adults under 30, the number of overindebted individuals rose by 5.8 percent to 1.17 million.
Widespread pressure on household budgets was also reflected in a Creditreform consumer survey conducted in June. In that poll, 40.6 percent of respondents reported feeling temporarily overwhelmed by their financial obligations over the preceding twelve months, a figure that reached 48.7 percent among respondents aged 30 to 49. Regionally, overindebtedness was highest in the city-state of Bremen at 15.89 percent, followed by North Rhine-Westphalia at 13.19 percent and Saxony-Anhalt at 13.08 percent, while Bavaria posted the lowest rate at 7.58 percent despite debt levels rising across all federal states.
Written by Sandy van Dongen sandy.vandongen@alpineweekly.com
