2024-05-06 08:51:33
State-recognized debt advice is available to provide free advice and support at 69 locations in Austria. The need is higher than it has been for a long time.
Vienna (OTS) – The annual debt report provides a comprehensive overview of the situation of debt advisors and their clients. The umbrella organization of state-recognized debt advice, ASB Schuldnerberatungen GmbH (asb), prepares numerous data from 2023. It was presented today at a press conference.
In 2023 there were 17% more first contacts than in the previous year – this is the highest value in twelve years. Those seeking advice are on average around 55,000 euros in debt. A survey shows that debts triple regarding every eight years if not repaid. Interest, compound interest, legal and debt collection costs and fees cause this explosion in outstanding debt amounts.
Reasons for over-indebtedness
32% of clients cited “unemployment and deterioration in income” as the reason for excessive indebtedness. 21% cited “money management/lack of financial education.” A further 18% had previously become self-employed and became overly indebted. “What is alarming regarding the current data is that one in eight people already cite high living costs and housing costs as a reason for over-indebtedness,” says Clemens Mitterlehner, managing director of the umbrella organization asb. “The cost of living and housing costs in particular have to be seen once morest the background of inflation. This value is two and a half times higher than the year before,” says Mitterlehner.
Reference budgets as a measure of poverty
More than a third of the debt counseling clients had an income below the subsistence level (basic amount 2023: 1,110 euros). If you compare the amount of the subsistence minimum with the reference budgets collected annually by the asb, it becomes clear that people with debts very often have to live in poverty and in existential deprivation. The current value is currently 1,730 euros per month for a single person. The reference budgets show what amount is necessary for a good, adequate life including a minimum of social and cultural participation.
What has to happen? – Debt advice suggestions
The explosion of debts due to non-payment must be stopped. There needs to be an upper limit – debts should be allowed to double at most due to interest and costs. We clearly reject plans to lower the AMS net replacement rate. In order to prevent over-indebtedness, the net replacement rate must be increased to 70%. In light of rising prices, it is becoming increasingly clear that it is no longer possible to survive on the subsistence level. The subsistence minimum must be raised to the level of the reference budget in order to enable people with debts to live a dignified life and a minimum level of social and cultural participation. The threat of tightening of insolvency law for private individuals must be averted. An extension of the duration of the procedure to five years from mid-2026 is in the offing.
Smoke for structural reforms
“The crises of recent years have hit people who were already in debt particularly hard. Above all, the price increases for food, rent and energy have exacerbated the situation for many people,” says Social Affairs Minister Johannes Rauch. The federal government therefore took rapid measures and thereby secured the livelihoods of many people.
Rauch: “The federal government has invested a total of over 40 billion euros to quickly help the people in Austria. The package once morest child poverty provides all families at risk of poverty with 60 euros per child per month. The living umbrella helps in acute emergency situations. The valorization of social and family benefits and the significant increase for minimum pensioners were also important support measures.” The Minister of Social Affairs emphasized that he prevented the reduction in unemployment benefits discussed last year.
In the coming years, structural reforms will be necessary to prevent poverty in Austria. He advocates basic child security and minimum security instead of the existing social assistance. The Minister of Social Affairs also supports raising the subsistence minimum.
Better data on the debt situation
Due to the increased demand for debt advice, the Ministry of Social Affairs has made almost 1.4 million euros available in special funding between 2021 and 2024. This support is in addition to regular funding, which is secured until the end of 2025.
The collection of data on the debt situation will improve in the next few years. The Ministry of Social Affairs has amended the Income and Vital Statistics Ordinance for this purpose. In the future, execution data can be linked anonymously with other statistical and administrative data. This allows more well-founded statements to be made regarding the existence of over-indebtedness. Regional evaluations will also be possible. At the end of the year, a survey on over-indebtedness will be available for the first time, which the Ministry of Social Affairs will implement together with Statistics Austria. It will be published annually in the future. This means that social policy measures and reforms can be planned even more accurately.
This year, the Ministry of Social Affairs is focusing on financial education for women. The funding for this will also be increased. “Prevention pays off in many ways, especially when it comes to over-indebtedness,” Rauch is convinced. “Financial support for those affected is only sustainable if financial education is expanded at the same time and debt counseling services are available.”
The 2024 debt report is below www.schuldenberatung.at/service-downloads ready for download.
Die Photo gallery for the press conference is available from 11:30 a.m.
Background material:
New web portal for debt advice: www.schuldenberatung.at
Questions & Contact:
Questions at asb:
Mag.a Christiane Moser, Public Relations, T. 0732-65 65 99, Mobile 0681-104 330 46, E. christiane.moser@asb-gmbh.at
Mag. (FH) Clemens Mitterlehner, Managing Director, T. 0732-65 65 99, 0681-104 704 45, E. clemens.mitterlehner@asb-gmbh.at
Contact the heads of debt advice in the federal states:
Vienna Social Fund Debt Advice, Christian Neumayer, T. 01-24524-60247, 0676-8289 60247, E. christian.neumayer@fsw.at
Debt advice for Lower Austria, Michael Lackenberger, T. 02742-35 54 20, E. st.poelten@sbnoe.at
Debt advice Upper Austria, Mag. Thomas Berghuber, T. 0732-77 55 11, 0699-1 777 555 0, E. t.berghuber@ Schuldnerberatung.at
SCHÜLDNERHILFE OÖ, Mag. (FH) Ferdinand Herndler, T. 0732-77 77 34, 0699-81 66 57 54, E. herndler@ Schuldner-hilfe.at
Debt advice Salzburg, Mag. Peter T. Niederreiter, T. 0662-879901, 0676-50 75 200, E. peter.niederreiter@sbsbg.at
Debt advice in Tyrol, Mag. Thomas Pachl, T. 0512-57 76 49-14, E. thomas.pachl@sbtirol.at
ifs debt advice Vorarlberg, Mag. Eike Grabher, T. 05-1755 4824, E. eike.grabher@ifs.at
Debt advice Styria, Kerstin Harm, T. 0316-37 25 07, E. kerstin.harm@staf.or.at
Debt advice Carinthia, Andreas Pregl, T. 0463-51 56 39, E. andreas.pregl@sb-ktn.at
Service point for debtors Burgenland, Dr. Michaela Puhr, T. 057-600-2149, E. post.kreditenberatung@bgld.gv.at
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