Decline in Over-Indebtedness Continues in Brandenburg

Brandenburg has seen a consistent decline in the number of individuals facing over-indebtedness, a trend attributed to ongoing economic uncertainties affecting consumer behavior. Recent data from the economic information service Creditreform indicates that approximately 159,750 households in the region were classified as over-indebted in the past year. This marks a decrease of 2.9 percent compared to the previous year.

In the context of national comparisons, Brandenburg stands out as one of the federal states with the most significant reduction in over-indebtedness rates in 2024. Alongside Saarland, Thuringia, Schleswig-Holstein, and Bremen, it reported a notable decline.

The designation of over-indebtedness applies to those who are highly likely to be unable to meet their payment obligations for an extended period. This situation arises when individuals lack both assets and credit options to cover their living expenses.

A key factor behind the declining rates of over-indebtedness in Brandenburg is the sustained consumer restraint observed among households. Driven by economic uncertainties, many consumers have opted to manage their finances more conservatively.

Additionally, the overall over-indebtedness rate fell slightly by 0.18 percentage points to 7.54 percent. When compared to 2014, this figure has decreased by nearly 2.5 percentage points. The over-indebtedness rate is calculated based on the proportion of over-indebted individuals relative to the adult population.

This trend reflects a broader pattern of financial prudence among consumers in Brandenburg, as they navigate through uncertain economic times. The ongoing decline in over-indebtedness suggests that many individuals are prioritizing savings and cautious spending, which may serve as a buffer against future financial challenges.