Over 7 Million Adults in Germany Struggle with Debt

A recent study by Creditreform has revealed that 7.36 million adults in Germany are currently struggling with debt, unable to pay their basic monthly expenses. This represents a significant increase of 293,000 debtors from the previous year. The study, published in the 2026 edition of the SchuldnerAtlas, highlights the growing concern of debt in Germany, a country once known for its economic stability.

The situation is particularly alarming among young people under the age of 30, with 1.17 million individuals unable to pay their bills. Experts point to the rise of "buy now, pay later" services as a contributing factor to the increasing debt, as these services can encourage impulsive purchases and lead to a loss of control over spending. Consumers are advised to use these services with caution and carefully monitor their payment deadlines.

According to the study, men are more likely to struggle with debt than women, with 4.97 million men compared to 2.97 million women experiencing debt management issues. The regions with the highest rates of debt are Bremen, North Rhine-Westphalia, and Saxony-Anhalt, while cities such as Gelsenkirchen and Bremerhaven have the highest percentage of doubtful claims.

The main causes of Germany's increasing debt crisis are attributed to the rising cost of living, particularly in large cities, high rent and energy prices, and the growing precariousness of the German job market. Experts predict that this trend will continue into 2027. The situation is not only challenging for citizens but also for public finances, with experts warning of a significant budget deficit and a potential reliance on borrowing.

The German government's debt is also a concern, with estimates suggesting that the deficit could reach 300 billion euros per year by 2040. This could lead to a debt-to-GDP ratio of 100% by 2040, necessitating either tax increases or spending cuts. Economists stress that urgent action is needed to address the country's financial challenges.

The study's findings have significant implications for policymakers and consumers alike. As the German economy continues to grow, it is essential to address the root causes of debt and develop strategies to support those struggling financially. This may involve increased financial education, improved access to credit counseling, and more effective regulation of the financial sector.

Ultimately, the growing debt crisis in Germany serves as a reminder of the need for responsible financial management and the importance of addressing the country's economic challenges. As the situation continues to evolve, it is crucial to monitor developments and explore solutions to support those affected and promote sustainable economic growth.

Key points

• 7.36 million adults in Germany struggle with debt, unable to pay their basic monthly expenses.