A record number of young people have applied for debt restructuring

In general, more people want help to get rid of their debts.

Just over 15,000 people applied for debt restructuring during the first half of 2020, an increase of 41 percent compared with the same period in 2019. Of these, more than 4,000 were between 18 and 34 years old, a doubling from last year.

- For the first time in my life, I am very worried about young people's financial skills and status.

Once you have these problems, it is difficult to get out if you do not act as fast as you can, says Per-Olof Lindh, unit manager at the Enforcement Officer, to TT.

There is help

All municipalities have budget and debt advisors you can contact for tips and advice.

Elin Håkanson, who works in Uppsala municipality, talks daily with people who need help with their finances. 

- It is really everyone who calls here, financial worries can affect anyone.

Often, something unforeseen has happened that makes you no longer able to manage your finances, for example that you become ill longer than you think and do not have a sufficiently large buffer.

Often it is the buffer that saves you when something unexpected happens.

It can be anything from getting sick or unemployed, or being involved in a divorce.  

- It is difficult to say a number, it can be so different.

A tip is to find out how much you would receive in sickness benefit if you become ill for a longer period of time and try to live on it for a month, says Elin Håkanson. 

The rent always goes first 

If you start to lose control of your finances, it is important to prioritize the basics.  

- I usually try to help map out how to prioritize - rent, electricity and food always come first.

There are far too few who know that a late rent can be grounds for eviction.

Always pay the rent first.  

If you have expenses that you cannot pay on time, contact the creditor before the due date.

Have a dialogue, usually it can be solved. 

- Most people try to do the right thing even though they have ended up in an economic crisis, it is rarely about not wanting to pay.

Still, it is easy to end up in a vicious spiral of taking out a loan (with worse terms and higher interest rates) to try to repay other loans, says Elin Håkanson.