Debt problems growing in the oil counties

Decrease in total taxes Debt trade deficitMoney. Photo: Norway Today Media

Debt problems growing in the oil counties

The number of payment notifications increases in the oil counties in southern and western Norway, according to an analysis from the debt collection company Lindorff.

 

Norwegians had just shy of 1.3 million payment notifications in the first quarter, an increase of 2.4 percent from the same quarter last year. And the development is worst in the areas affected by the oil crisis.

West and East Agder has an increase in the number of payment notifications of 10.3 and 7.5 percent respectively, according to the analysis. Rogaland has a growth of 8.9 per cent, while the increase in Hordaland is 4.5 per cent.

– The payment challenges in South West Norway have increased in recent years as a result of the decline in the oil industry, where the consequence has been higher unemployment. There is a clear connection between financial problems and being without work, says Anette Willumsen, CEO of Lindorff.

Decline in unemployment

Growth in unemployment has gone down in these areas, and Willumsen therefore believes that debt growth will slow down through the year.

On a national basis, 254,711 people were listed with one or more payment notices in the first quarter. That is 0.4 per cent more than in the same period last year. In Rogaland, 4.2 per cent are more people who are having trouble paying the bills.

– The number of notificationss increases more than the number of people with payment difficulties. This means that those who are already struggling have incurred even more payment notifications. This tendency does not change overnight

– A positive development is dependent on that those who have lost their job, get a new one, and that many have to adjust their consumption, she adds.

 

© NTB Scanpix / Norway Today

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