The situation for many households is becoming increasingly critical, as Schufa reports a massive surge in financial difficulties. The debt crisis is affecting broad segments of the population, even though many people are already drastically reducing their spending. The rise in serious payment problems is leading numerous citizens to postpone loan repayments and more frequently access credit. The risk of consumer insolvency is also looming, as many affected individuals lack savings. The credit agency is registering this trend more clearly than ever before. (schufa: 13.11.25)
Everyday burdens are rapidly increasing
Many households are experiencing financial difficulties, even though they are keeping track of their fixed obligations. More and more people are postponing payments, overdrawing accounts, or stopping loan repayments. Schufa reports an increase of around 13 percent in new cases compared to the previous year. This trend shows how deeply the debt crisis has already permeated everyday life. Payment problems caused by buy-now-pay-later services are also exacerbating the situation, as late payments directly lead to additional costs.
The number of people who can no longer manage regular rent or loan payments is particularly high. According to credit agencies, this now affects one in ten. At the same time, borrowing is increasing noticeably, as significantly more people are seeking new access to credit compared to the past. Many low-income households are thus sliding deeper into personal financial distress.
Young people lose track of their finances more quickly
Payment problems are particularly prevalent among 18- to 24-year-olds. Almost half of these young people are putting off paying bills. A large proportion also regularly overdraw their accounts. This trend exacerbates the debt crisis in a group that already has little savings. Credit agencies like Schufa show particularly high rates of increase in this group.
A similar picture emerges among low-income earners with a net household income of less than €2,000. Many are suspending rent or loan payments to meet other obligations. At the same time, they are more frequently seeking access to credit, even though they are already experiencing financial difficulties. This development significantly increases the risk of future consumer insolvency, as financial reserves are lacking.
Growing Anxiety about the Future Across the Country
Two-thirds of those surveyed view their financial future with concern. Rising energy and food prices are pushing many to the brink of financial ruin. A significant proportion expect to need a loan if costs continue to rise. Numerous people also report that their savings are either nonexistent or barely sufficient. This exacerbates their financial distress and leads to further borrowing.
Many respondents without financial reserves resort to short-term loans sooner or later. According to the credit agency, this increases the risk of further financial difficulties. At the same time, the fear of personal bankruptcy is growing, as many people see no way out of their current situation.
Insolvency figures are rising rapidly
Creditreform reports approximately 72,100 new cases of consumer insolvency for 2024. This represents a strong continuation of the trend. “The trend reversal that was already becoming apparent in 2023 intensified in 2024,” according to a company official. Rising living costs and higher borrowing costs are among the main drivers of this development. The loss of well-paid jobs is also contributing significantly to the spread of financial hardship.
The Schufa credit agency is simultaneously observing an increase in problematic account activity. This is pushing the debt crisis deeper into the daily lives of many people, leading to new financial difficulties and increased borrowing. Every additional burden can pave the way to personal bankruptcy.
Looking ahead: Stability remains difficult
Many households are seeking solutions to stabilize their finances. However, rising prices, low savings, and a tight labor market are making every attempt more difficult. The Schufa report already shows how quickly these financial difficulties can spread. Without structural relief, an even greater wave of financial hardship is imminent.