The number of over-indebted borrowers goes up

KRD data show that excessive debt with several creditors is a problem for approx. 590,000 Poles whose total debt amounts to almost PLN 22 billion. Multi-debtors often incur new liabilities to pay off the previous ones. This is also visible in the statistics of the debt relief program Relief from Debt.

"Our clients have an average of seven loans from six creditors for the amount of about PLN 50,000. They often find themselves in a difficult financial situation, mainly due to illness, loss of job," Sylwia Pawlina, spokeswoman for the program, said.

"Research shows that 28 percent of Poles have concerns about whether they will be able to pay off a debt of PLN 10,000. This mainly applies to older people, but not only. Payday loans can destroy everyone's life and I say it without any exaggeration. Clients who join the debt relief program have neurosis, depression, and very often suicidal thoughts," Sylwia Pawlina added.

The data from the KRD shows that in December 2021 loan companies granted a total of 295,900 new loans for a total amount of PLN 768 million. It's about 45 percent more than a year ago.

(Newseria)