Figures show an increase: more and more young people are falling into personal bankruptcy

Anyone surfing the internet will inevitably be bombarded with so-called bargains. At the touch of a button you get a new mobile phone or a new television. You literally don’t get presented with the bill until later.

“Easily get into debt”
Gudrun Steinmann, head of financial education at FSW Debt Advice, reports: “A young man recently reached out. He had bought a television for 1,200 euros and wanted to pay for it later. What was later has now become a year. And because of interest, fines and letters from lawyers, 1200 euros became 2400 euros. It’s easy to fall into the debt trap.”

The expert sees cashless payments as the main reasons for this – especially in relation to social media. But this has serious consequences for the young people themselves. Steinmann: “Young people are losing their creditworthiness. Financing an apartment, a car or taking out a loan is becoming increasingly difficult.”

The figures show increases
And the situation is currently getting worse. At Debt Advice Vienna, one in five customers is under the age of 30 and the number of personal bankruptcies among people under 24 has increased by 22 percent in 2023, according to the Alpine Creditors Association.

Help from an unexpected source
Debt advice therefore requires a significant expansion of financial education in schools and through appropriate institutions – and this is certainly mandatory. And help also comes from unexpected sources. Steinmann: “There is a new challenge on TikTok. ‘Loud budgeting’ encourages young people to handle money carefully. I hope the word gets to us too.”