The Salzburg debt counseling is currently experiencing an immense onslaught. In the week of January there were almost twice as many new registrations as in the previous year. The reason for this is the general teaching.
A total of 38 new registrations within one week, these are record-breaking numbers for the Salzburg debt counseling service. This trend is likely to continue this year, says Peter Niederreiter, Managing Director of the Salzburg Debt Advice Service: “All the signs point to an increased rush for debt advice today.”
Income no longer covers costs
Responsible for this is the general inflation, the rising rental and energy prices and increasingly also the rising interest on loans. So far, low-income groups in particular have been affected, and here more and more single earners and single parents, but according to debt advisor Niederreiter, this is increasingly changing. “We notice that this is also increasingly going into the so-called medium-sized companies. And we notice that the income from work is simply no longer sufficient to cover the running costs.”
In most cases, the trigger for the fact that the income is no longer sufficient is a job loss, a divorce or a loss of income, for example due to parental leave. In many cases, the debt leads to personal bankruptcy. Last year, a total of 348 private bankruptcies were registered in Salzburg, an increase of 25 percent compared to the previous year.