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Over-indebtessness on the rise again in Germany, survey shows
Published by Global Banking and Finance Review
Posted on November 14, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 14, 2025
2 min readLast updated: January 21, 2026
Over-indebtedness in Germany is rising, affecting 5.67 million adults due to economic weakness and rising costs, warns Creditreform.
BERLIN (Reuters) -Over-indebtedness among German adults is climbing again after years of decline, as economic weakness and rising costs squeeze household finances, data from credit agency Creditreform showed on Friday.
About 5.67 million people aged over 18 are over-indebted - defined as total expenditure exceeding income - in 2025, up 111,000 or 2% from last year, pushing the rate to 8.16% from 8.09%.
"The trend reversal is here – and it was predictable," said Patrik-Ludwig Hantzsch, head of economic research at Creditreform, citing depleted savings buffers after years of crisis-driven spending caution.
The surge spans nearly all social groups, including middle-income households seeking to maintain living standards through deferred consumption.
Young adults under 30 and seniors over 60 are particularly vulnerable – the former due to credit-fuelled spending and online purchases, the latter to rising living costs and limited pensions.
Creditreform warned the situation could worsen in 2026 as high interest rates, a softer labour market and persistent inflation weigh on consumers.
"Over-indebtedness risks becoming a major social issue again," Hantzsch said.
(Reporting by Klaus Lauer, Writing by Friederike Heine, Editing by Miranda Murray)
Over-indebtedness occurs when a person's total expenditures exceed their income, leading to financial distress and an inability to meet financial obligations.
Demographic vulnerabilities refer to specific age groups or social classes that are more susceptible to financial difficulties, such as young adults and seniors.
Economic factors contributing to debt include rising living costs, high interest rates, and a weaker labor market, which can strain household finances.
Inflation increases the cost of goods and services, reducing purchasing power and making it harder for households to manage their budgets.
A credit agency is a company that collects and analyzes credit information about individuals and businesses to provide credit ratings and reports.
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