More and more people are applying for debt restructuring

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Published 13 February 2024 at 16.08

Economy. During 2023, 31,396 people applied for debt settlement – roughly 5,700 more than the year before. But six out of ten have their application rejected.

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Persons with such large debts that they cannot repay within a foreseeable time can apply for debt settlement with the Enforcement Directorate.

In 2023, 31,396 people applied for debt relief – an increase of 22 percent compared to the same time last year.

– Many households are having a tough time with their finances because the costs of accommodation, electricity and food have increased rapidly. It probably affects how many people apply for debt restructuring. We are also seeing a change in the reasons behind the applications. Previously, the majority stated illness or unemployment as reasons for applying for debt restructuring. Today, it is increasingly consumer debt that is the cause. There are also significantly more young people applying now, which is worrying, says Per-Olof Lindh, head of unit at the Kronofogden in a dispatch.

The increase differs across the country – in Gotland there were 8 percent more applicants in 2023 compared to 2022, while the increase in Kronoberg county was 33 percent.

Of those who apply, 65 percent are rejected, because they do not meet the requirements.