Increasingly younger people on the brink of bankruptcy
More and more people under the age of 26 are falling into a debt spiral. Most often their creditors are non-bank loan companies.
Katarzyna Rogoznicka of the Kiżuk & Michalska Economic Counseling Center in Szczecin points out that more and more people under the age of 26 who have fallen into a debt spiral are reporting to the center. Most often their creditors are non-bank loan companies. Young people use the services of such companies without always realizing the real cost of the loans.
The solution for them is to declare consumer bankruptcy. Until March 24, 2020, in order for the court to declare consumer bankruptcy, it had to be involuntary by the debtor. Currently, there is no such premise, so the court declares bankruptcy in almost every case. However, the amount and duration of the debtor’s repayment varies.
Data from the Central Economic Information Center shows that in the first half of 2022, consumer bankruptcy was declared against 7339 people. This is 19 percent less than a year ago. The youngest bankrupt was 21 years old, and the oldest was 92. Just under 6.3 percent of all consumer bankruptcies involved people aged 19-29.