An ordinary salary is no longer enough. More and more Norwegians are struggling with bills
More and more Norwegians with regular jobs and steady incomes are having trouble paying basic bills. Data from the debt collection industry show a clear shift in the structure of debt. Increasingly, the problem is not consumer loans, but spending on electricity, food and municipal charges.
Data show that more and more people who had previously been managing normally are having trouble repaying their debts.
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Until recently, debt collection cases primarily involved people struggling with unsecured debt. This included consumer loans and credit cards, among other things. Now the situation looks different. Data show that the number of cases related to unsecured debt has fallen by 15%, while the number of unpaid current bills has risen by as much as 40%.
The problems affect a new group. Having a job does not protect against arrears
The profile of people experiencing payment difficulties in Norway is changing. Increasingly, they are people in ordinary occupations who receive regular salaries. Their wages have risen in recent years. Despite this, household budgets do not always cover basic living costs.
Steinar Nielsen of Intrum Norge told Nettavisen that a group of people has emerged who have ordinary jobs and a standard financial situation, yet are beginning to encounter problems. Rising expenses have reduced households' financial buffer. This mainly concerns electricity, food and municipal charges. As a result, even a small unforeseen expense can disrupt an entire monthly budget.
Steinar Nielsen of Intrum Norge told Nettavisen that a group of people has emerged who have ordinary jobs and a standard financial situation, yet are beginning to encounter problems. Rising expenses have reduced households' financial buffer. This mainly concerns electricity, food and municipal charges. As a result, even a small unforeseen expense can disrupt an entire monthly budget.
Electricity, food and charges are weighing on budgets. Debt collection is affecting an increasing number of employed people.Photo: Adobe Stock, standard licence
Debt collection involves current expenses. Many cases concern small amounts
Data from the Norwegian Financial Supervisory Authority (Finanstilsynet) show the scale of changes visible in the debt collection market. High interest rates and rising living costs make it difficult to settle obligations on time. Geir Grindland, who has been associated with the debt collection industry for many years, also pointed to problems faced by businesses. Some debtors remain in debt collection for a long time after their case has been transferred there.
Individual arrears are often not high. However, their number is very large. Nearly four out of 10 debt collection cases concern claims below NOK 500. Almost three out of four involve amounts below NOK 2,500. This means that a large share of proceedings concerns small, everyday obligations.
Individual arrears are often not high. However, their number is very large. Nearly four out of 10 debt collection cases concern claims below NOK 500. Almost three out of four involve amounts below NOK 2,500. This means that a large share of proceedings concerns small, everyday obligations.
The change is also visible in the types of bills being sent to debt collection. Costs that households cannot easily eliminate from their monthly expenses are becoming increasingly important. With a limited financial buffer, even an arrear amounting to a few hundred NOK may be referred to debt collection.
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