welt.de
Economic Slowdown in Baden-Württemberg Expected to Increase Over-Indebtedness
Amidst a weakening economy and job losses in Baden-Württemberg, Germany, social welfare organizations predict a future rise in over-indebted individuals, although current debt counseling centers haven't yet seen a significant increase; in 2022, approximately 620,000 people (6.7 percent of adults) were over-indebted, down from 8.2 percent in 2019.
- What long-term consequences could the increasing use of digital credit options have on the level of over-indebtedness among young people in Baden-Württemberg?
- The delayed impact of economic crises on debt counseling indicates a potential for a future surge in demand. The increasing use of digital credit systems among young people poses a specific risk factor for over-indebtedness. Regional disparities persist, with Pforzheim showing the highest rate (11.7 percent) and Tübingen the lowest (4.8 percent) in 2022.
- How do regional disparities in over-indebtedness rates in Baden-Württemberg reflect underlying socioeconomic factors, and which demographics are most vulnerable?
- While the overall rate of over-indebtedness in Baden-Württemberg decreased from 8.2 percent in 2019 to 6.7 percent in 2022 (around 620,000 people), job losses in major companies are anticipated to increase demand for debt counseling services. This is especially true for single parents, families, low-wage earners, and young people using digital payment systems with credit options.
- What is the expected impact of the economic slowdown and job losses in Baden-Württemberg on the number of over-indebted people, and when might this impact be felt?
- We expect a rise in over-indebted people in Baden-Württemberg, Germany, due to economic slowdown and rising living costs," says Ulf Hartmann of the Paritätischer Wohlfahrtsverband. However, Schuldnerberatungsstellen (debt counseling centers) haven't yet seen a significant increase. The impact of economic crises on debt counseling is often delayed, sometimes by months or years.
Cognitive Concepts
Framing Bias
The article frames the issue through the perspective of social welfare organizations, highlighting their concerns and predictions about a potential rise in debt. While this is a valid perspective, it could benefit from including perspectives from other stakeholders, such as government officials or economists, to provide a more balanced view.
Language Bias
The language used is generally neutral and objective, relying on statements from experts and data from Creditreform. However, phrases like "extrem angespannt" (extremely tense) could be considered slightly loaded, though this is a relatively minor concern.
Bias by Omission
The article focuses on the potential increase in debt due to economic downturn, but omits data on government support programs or initiatives aimed at helping individuals facing financial hardship. It also doesn't explore potential solutions or preventative measures beyond seeking help from debt counseling services. The lack of this context limits a comprehensive understanding of the issue and available resources.
Gender Bias
The article mentions that single parents and families are disproportionately affected, which could indirectly point to gender bias if women are over-represented in single-parent households. However, the article does not explicitly focus on gender in a biased manner. More data is needed to determine if this is a significant bias.
Sustainable Development Goals
The article highlights a rise in personal debt and insolvency, particularly affecting low-income and middle-income individuals, single parents, and families. This exacerbates existing inequalities and hinders progress towards reducing inequalities within and among countries (SDG 10).