Raina Mitkova: The share of bad loans in Bulgaria is at record low levels
Consumers have no problems with servicing their obligations, stated the manager of EOS Matrix and the chairman of the Association for Receivables Management
“During the pandemic there was a period when it was difficult to service duties as a lot of people were out of work, but that has passed. “Unemployment is low, and the tight labor market and the desire to retain employees is leading to wage growth, which somewhat mitigates the effect of inflation,” she pointed out.
Mitkova calls for increased attention, since in the summer months the costs are less because there are no large electricity and heating bills, but she believes that when they are included in the winter, then there will be additional pressure on people.
“This pressure, combined with inflation and the expected increase in interest rates on loans, can affect solvency and any potential lender should keep this in mind,” insists the expert.
She warned that it’s risky to take on debt now because it’s uncertain how far wages will go and how far interest rates will continue to rise. “They will keep the first new loans, but this will inevitably affect the existing ones as well.” Coupled with the higher costs of bills and food, it is possible to experience difficulty at some point. Our advice to consumers is to handle their budget very well. Refrain from non-essential purchases. With the unknown, it’s good to prepare as a business and as a consumer,” said EOS Matriks executives.
Mitkova reports that recently many people are interested in how to invest their special funds to protect them from inflation.
How long do we need to have money set aside for peace of mind?
See the entire commentary on the video material at Bloomberg TV Bulgaria.
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