Private bankruptcies in Austria: Over 30% self -indebted - this is how it came about!

Private bankruptcies in Austria: Over 30% self -indebted - this is how it came about!

Wien, Österreich - in 2024, 8,822 people went to private bankruptcy in Austria, which corresponds to a slight decline of 0.3 % compared to the previous year. Nevertheless, a current analysis of the KSV1870 credit protection association shows that over 30 % of those affected are to blame for their financial situation. The main causes of this personal fault are an overestimation of one's own performance and bad consumption behavior. This problem is increasingly occurring, especially for under-40 years, while the old generation tends to be less common in financial difficulties.

The reduction in the dignity of five to three years decided during the Corona crisis is critically considered by KSV1870. They demand a return to the original length to ensure that debtors show a certain drive to regulate their debts. "In many cases, the main causes of the private bankruptcies are former self-exposure that were decisive in 26.7 % of the cases", says the report by 5min.at.

Demography of those affected

The data show that the average debt was reduced in 2024: for men, they are now at 128,000 euros, while women have an average of 69,000 euros in debt. This could partially be due to the fact that more than 60 % of the applicants are men. On closer inspection of the age groups, we find that 46 % of the applicants are between 41 and 60 years old, while the proportion of under 25 has increased in one year and is now 6.3 % of the applications. In addition, an increase in debt among younger adults shows, which indicates challenges in dealing with financial education deficits.

The WIFO economic research institute has examined the returns of private confidence in Austria since 1995 and registered a total of 205,000 applications. The most common causes of over -indebtedness are unemployment and loss of income, which lead to financial problems in 30 % of cases. Especially during the pandemic it was found that their influence on the private bankruptcy was marginally - hardly 0.7 % of the cases were triggered directly, which was not least confirmed by the fact that the wave of inflation had no significant effects from 2021 vorarlberg.orf.

economic factors and future developments

An analysis of the macroeconomic and sociopolitical factors shows that a variety of aspects leads to debt, including rising credit rates, buying on installments and personal circumstances such as separation or illness. The FSW debt counseling service emphasizes that a lack of financial education was also identified as the main cause. These aspects represent great challenges for society, since the number of private bankruptcies is still below the level of the Corona crisis.

In summary, it can be said that a high percentage of private competitions is caused by personal wrong decisions. In order to influence future developments, it is crucial that both individual and social approaches are pursued to improve financial education and to support financial emergencies. The current situation requires a rethink and more responsibility on the part of the debtors, as KSV1870 repeatedly emphasizes orf.at.