The average debt of Czech debtors with overdue financial obligations increased significantly last year, according to analyses of client data from the KRUK company. The average debt of debtors rose from 26,500 crowns to 39,200 crowns, an increase of 12,700 crowns. Debtors from the Moravian-Silesian Region accounted for over 15% of Czech debtors, with an average deficit of 37,600 crowns.

Men make up 53% of debtors and have higher obligations, with an average of 40,700 crowns. The South Bohemian Region has the highest average debt, approximately 43,200 CZK. The age group of 35 to 44 years represents 27% of debtors with an average debt of over 43,000 crowns. Almost half of the debtors have not started repaying their obligations, with nearly a third of debtors having over one overdue debt.

Last year was challenging for most Czech households due to increased energy prices and inflation, creating significant pressure on domestic family budgets. Therefore, it is essential to contact the creditor in time, explain the situation, and look for a joint solution to avoid accumulating debts.

Jaroslava Palendalová, CEO of KRUK, emphasized the need for debtors to seek solutions for their overdue debts, stating that it is crucial to contact creditors as soon as possible to explain the situation and work together on a feasible solution.

Czechs have overdue financial obligations primarily in their productive age, with almost 31% of debtors aged 25 to 34 years old. It is essential to raise awareness about the importance of financial literacy and responsible borrowing to reduce the number of people with overdue debts.

In conclusion, the sharp increase in overdue debts of Czech debtors highlights the need for financial literacy and responsible borrowing. It is crucial to seek solutions for overdue debts by contacting creditors, explaining the situation, and finding a joint solution. Raising awareness of financial literacy can help prevent the accumulation of overdue debts and ensure a stable financial future for individuals and families.

Article by Prague Forum