Because of Corona! Berliners have less debt

Fear of red numbers! 331,379 Berliners are over-indebted. For every ninth (10.8 percent) adult resident of the capital, the income is no longer sufficient to meet financial obligations.

This puts Berlin in the third-worst place among all federal states. The situation is only worse in Saxony-Anhalt and Bremen. The main causes: unemployment, illness, divorce.

This is shown by the “Borrower Atlas Berlin 2021” published on Thursday by the credit agency Creditreform.

► After all: Compared to 2020, the number of over-indebted Berliners has even dropped by 34,599 (-9.5 percent).

“There were fewer opportunities to spend money, such as holidays, wellness, gastronomy and culture,” said Creditreform spokesman Christian Frey. In addition, many consumers put the brakes on spending due to short-time work, the threat of unemployment and uncertainty about the further course of the corona pandemic.

► But there is also a sad fact for Berlin: Only in two districts (Pankow, Steglitz-Zehlendorf, see chart below) is the debtor ratio below the national average of 8.9 percent!

As has been the case for years, it is highest (14 percent) in Spandau, where exactly 27,938 adults are overindebted. Closely followed by Marzahn-Hellersdorf (13.4 percent).

However, there is also the highest over-indebtedness rate in all of Berlin, namely in the district of Marzahn, where one in five (20.7 percent) has money worries! The lowest rate (4.3 percent) is in the districts of Nikolassee, Schlachtensee and Zehlendorf.

Christopher H. (26), bartender from Wedding: “I owe 2700 euros.  Due to the lockdown I was without a job and applied for Hartz IV.  The job center then transferred the sum to me three times in one month.  I didn't notice it right away, spent the money.  Now I have to stamp it out
Christopher H. (26), bartender from Wedding: “I owe 2700 euros. Due to the lockdown I was without a job and applied for Hartz IV. The job center then transferred the sum to me three times in one month. I didn’t notice it right away, spent the money. Now I have to stamp it out” (Photo: Ralf Günther)

Falling debtor numbers, but the future looks bleak! Because the dramatically rising prices for energy, food and other goods (in February alone five percent inflation!) could also bring more households into financial distress.

Credit expert Frey: “If you have already calculated the tip on the button, any increase in price will lead to over-indebtedness.”

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