Figures show increase

More and more young people are slipping into personal insolvency

Every day, 30 new customers contact the Viennese debt advice service.

(Bild: Markus Wenzel)

Experts sound the alarm: every day, 30 new customers seek help from debt counseling. Social media as a trap.

Anyone who spends time on the Internet is inevitably bombarded with supposed bargains. A new cell phone or a new TV is available at the touch of a button. The bill, in the truest sense of the word, is only presented later.

Every day, 30 new customers contact the Viennese debt counseling service.

(Bild: Markus Wenzel)

"Quickly caught in the debt trap"
Gudrun Steinmann, Head of Financial Education at FSW Schuldenberatung, knows all about it: "Just recently, a young man got in touch. He had bought a television for 1,200 euros and wanted to pay for it later. The later has now turned into a year. And interest, penalties and letters from lawyers have turned 1200 euros into 2400 euros. It's easy to fall into the debt trap."

Debt advisor Gudrun Steinmann: "We have 30 new registrations every day."

(Bild: FSW)

The expert sees cashless payment as the main reason for this - especially in connection with social media. However, this has serious consequences for the young people themselves. Steinmann: "Young people are losing their credit rating. Financing an apartment, a car or taking out a loan is becoming much more difficult."

22 percent

was the increase in personal insolvencies among under-24s last year. The impact on their future lives is enormous.

Figures confirm increases
And the situation is currently getting worse. One in five customers of the Vienna Debt Advisory Service is already under 30 and the number of personal insolvencies among under-24s rose by 22 percent in 2023, according to the Alpenländische Kreditorenverband.

Help from an unexpected source
Debt counseling therefore calls for a significant expansion of financial education in schools and through appropriate institutions - and this should be mandatory. And help is also coming from unexpected quarters. Steinmann: "There is a new challenge on TikTok. Under 'Loud Budgeting', young people are encouraged to handle money carefully. I hope this will also make the rounds here."