Number of insolvencies on the rise

More bankruptcies: “Mini-Benkos” are under 25 years old!

(Bild: © Markus Mainka (www.aviation-stock.de))

Alarming development: more debts among Carinthian companies and private individuals.

The year began with a rumble", says Barbara Wiesler-Hofer, head of the Carinthian Credit Protection Association 1870. As reported, one company bankruptcy follows the next - there are already 107 in Carinthia this quarter, 39 percent more than in the same period last year. Further Ilgenfritz companies from Villach were added to the list on Wednesday, where over 30 employees are fearing for the future of the traditional butcher's business.

Incidentally, 60 percent of private bankruptcies in Carinthia are attributable to men. The situation is getting worse for lower-income households.

Dr. Barbara Wiesler-Hofer, Kreditschutzverband 1870

"The number of bankruptcies is well above the pre-corona period," says Wiesler-Hofer, who does not see anything good coming: "The past few years have not only affected people, but also companies." The slight increase in private insolvencies is still manageable, with 170 cases opened in the first three months. What is new, however, is the high level of over-indebtedness - the average amount is 100,000 euros.

"Financial education belongs in school"
And also the age of those affected: Because seven percent are already under 25 years old when they slip into personal bankruptcy. "This is a new development because young people are less and less able to handle money," says the credit expert. Her appeal: "Financial education belongs in school. And parents should give their children cash rather than just payment cards, where the sense of value is lost." There are already "debt challenges" on social media where young "mini-Benkos" outdo each other.