Higher debts for the very young and the very old
business
In the case of private bankruptcies in Salzburg last year, the level of debt among the very young and very old increased. This is shown by a current evaluation by the Credit Protection Association from 1870.
The under-25s who went bankrupt in Salzburg last year had an average debt of EUR 48,000 – a third more than in 2021. The average debt for those over 61 in private bankruptcy rose even more. Specifically: by 37 percent to 230,000 euros.
autonomy and consumer behavior
The reasons for this are very different, says Aliki Bellou from the Credit Protection Association of 1870. In the case of older people, “the main reason given is former self-employment, which then subsequently manifests itself in private bankruptcy. For young people under the age of 25, it was mainly consumer behavior. In this respect, targeted financial education for young people is important so that they do not find themselves in the same situation again.”
Overall, however, debt fell in the case of private bankruptcies in Salzburg in the previous year – to an average of 120,000 euros. This is mainly due to the sharp decline in accumulated debt among those affected in the 40 to 60 age group. In an Austrian comparison, however, the state of Salzburg is above average with these values.
A quarter more personal bankruptcies
The number of personal bankruptcies in Salzburg increased significantly in 2022 – just like in Austria: from 281 in 2021 to 348 in the previous year. This corresponds to an increase of 24 percent.
Across Austria, the increase was 13.1 percent compared to 2021 – to 8,176 cases. And this year the number is expected to increase further. However, the high point of a private bankruptcy should not yet be reached. More on that in Significantly more personal bankruptcies in 2022 (oesterreich.ORF.at).