Germany Faces Rising Over-Indebtedness Amid Economic Strains

Recent data from the SchuldnerAtlas 2025 reveals a notable increase in over-indebtedness across Germany, marking the first rise since 2018. Currently, 5.67 million adults are over-indebted, which is an increase of approximately 110,000 from the previous year, pushing the national over-indebtedness rate slightly up from 8.09% to 8.16%. Bavaria continues to maintain a lower rate than the national average, though it too saw an increase from 5.93% to 6.05%. Regions with the lowest debt levels are predominantly Bavarian, including Eichstätt, Erlangen-Höchstadt, and Schweinfurt, while larger Bavarian cities such as Nürnberg, Straubing, and Hof report significantly higher debt rates. The demographic most impacted is individuals aged 30 to 49, whereas those over 70 years old exhibit the lowest indebtedness levels.

Key factors driving this trend include rising living expenses, persistently high rents, and stagnant wages, resulting in many employed individuals struggling to save. Long-term low income cases have surged by 191% since 2015, and health-related financial difficulties have increased by 46% since 2008. Conversely, unemployment as a cause has decreased substantially, reflecting shifting structural pressures. Debt counselling experts advocate for early and proactive intervention measures, including realistic household budgeting and caution against payment plans or buy-now-pay-later schemes that may worsen financial strain. They recommend recognized, largely free debt counselling services to assist individuals in negotiating their debts and formulating sustainable relief strategies.