Norwegians struggle more with paying credit card debt than consumer loans

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A report on Norwegians’ loan-financed consumption shows that we turn to credit cards more than to consumer loans. But it is more expensive and more uncertain, and the debt has increased.

The recent report from the Consumer Research Institute SIFO states that credit cards present the greatest problems for those who end up in debt problems, according to Aftenposten.

The survey on Norwegians’ loan-financed consumption shows that 28 percent have accumulated credit card debt, where they only pay the minimum amount or a smaller sum than what they owe when the bill arrives.

Around 13 percent state that they have one or more consumer loans.

The survey shows that Norwegians are more ashamed of consumer loans and that credit cards have a higher status, viewed as convenient, flexible and linked to benefits, although credit cards are more expensive and more unsecured than consumer loans.

54 percent say they are ashamed of credit card loans, 70 percent feel consumer loans are shameful.

When the survey was conducted, 32 percent of those surveyed answered either overdrafts on their account, one or more consumer loans, credit card debt – or more of these.

In October, E24 stated that the Debt Register’s figures showed a total Norwegian consumer debt totaling NOK 170 billion, an increase of 335 percent over the last 11 years. Of this, ordinary consumer loans account for about half, while credit card debt is just over one third.

SIFO’s researchers estimate that unsecured debt is a problem for 11 percent of the population – one in nine.

Consumer Minister Kjell Ingolf Ropstad (KrF) says he is concerned about the general debt development. According to him, before Christmas, the government began to work on measures to get people out of debt problems.

© NTB Scanpix / #Norway Today

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