More indebted before sms loans

It is usually said that sms loans and fast loans are one of the biggest reasons why there are so many debtors in Sweden today, but is it really true if you look at history? No, it actually doesn’t.

It is true that there are tens of thousands of Swedes who ended up at Good Finance because of sms loans, but the fact is that it was actually worse before sms loans came to Sweden in 2006.

Yes, sometimes it pays to do some research


When we were in Orlando to check out what the debt looked like before the sms loans came to Sweden, we were met by dismal statistics. In an article from Sveriges Radio from 2005 it says that about 500,000 people had debts with the bailiff, which can be compared to 423,000 people in 2016.

Thus, about 77,000 more had debts 12 years ago, before the first quick loans appeared up in the market, and then the population was not as large as today. At that time, Sweden had just over 9 million inhabitants compared to today’s 10 million.

This may seem strange if it has been assumed that it is the sms loans that more than ever before have chronicle debt. But it’s not really that strange because people simply took out other loans and credits before the sms showed up, and not everyone was able to repay their loans then either. Sms or not, there are always people who manage to get a loan even though they might not get it. Furthermore, it is not liabilities due to loans that make up the majority of the debts of the Good Finance, it is liabilities to the state .

What is the debt today?


Despite the fact that SEB’s Savings Barometer showed as late as October 2016 that the Swedes’ debt mountains have never been as large as they have now, the debts of Good Finance have for the first time in a long time been reduced.

This is a trend breach as the number of indebted persons at Good Finance increased until 2016. In 2016, the number of indebted persons decreased from 428,000 to 423,000, Good Finance announced recently in a press release .

Above all, young people’s debts are falling


In fact, it is the debts of the young people (18-25 years) that have fallen the most. In percentage terms, only slightly more than 1.1% had debts at Good Finance 2016 compared to 2015, while the decline among the young is as much as 5%. In addition, 8% fewer young people received their first Kronofogd debt compared to the previous year.

The Crown Magistrate believes that it is mainly the young people’s debts to the state in the form of TV fees that have dropped but nothing is mentioned if the debts due to sms loans have also decreased.

It would have been nice if Good Finance could have specified this, since it is often talked about that a large part of young people’s debt with Good Finance is due to sms loans, in addition to unpaid mobile subscriptions. But one thing is for sure: debts to the Swedish state are still over-represented at Good Finance.