A sharp rise in non-performing consumer loans

MoneyMoney.Photo:: Gorm Kallestad / SCANPIX .

Debt collection companies are reporting a sharp increase in the number of non-performing consumer loans. The youngest account for the bulk of debt collection cases.

In the largest debt collection company Lindorff said the number of cases of consumer loans and credit cards has grown by 30 percent in one year, according to newspaper Dagens Næringsliv.

– It is only now we see that the failure of consumer loans has increased significantly. The development is a warning that people should be more careful, said CEO Anette Willumsen.

The increase was greatest in Rogaland, which was hit hard by the oil crisis. Here the number of cases related to consumer loan and credit card debt has grown by 50 percent over the past year.

Lindorff said the age group between 25 and 45 years has the largest proportion of debt collection cases and issues that are related to consumer debt. An overview by debt collection company Kredinor shows a growth in the number of cases, especially among people between 18 and 25 years old.

– There has been a gradual increase in debt collection debt that younger people incur, says CEO Tor Berntsen.


Source: NTB scanpix / Norway Today