Bringing finance and money closer to young people is the common goal of the new cooperation between Intrum in Germany and Fabit.
“We are pleased that in Intrum Deutschland GmbH we have found another partner for whom financial education is just as important as it is for us,” says Susanne Krehl, founder of Fabit, the digital coach for a financially healthy life. “Intrum has long been committed to financial education in schools with the ‘Spendido’ initiative to sensitize young people to the topics of money, credit, debt and debt collection.”
“By partnering with Fabit, we are expanding our efforts to make financial education accessible to all. The Fabit app is the perfect everyday companion.” Kristina Klehr, Director Brand & Communications from Intrum Deutschland GmbH. “As a debt collection agency, we are not just an intermediary between companies and customers, we also help people in difficult financial situations to get rid of their debts. With Fabit, we can provide them with an independent tool that will support them in their financial recovery in the long term.”
Both Klehr and Krehl are convinced that Fabit can make a significant contribution to improving the financial organization of many households and at the same time deepen knowledge of financial relationships.
Financial education strengthens resilience in difficult times
Due to the ongoing deterioration in the economic situation, the financial situation of consumers is also becoming increasingly difficult. More and more people are struggling to pay their bills, according to Intrum’s European Consumer Payment Report 2022.
In order to keep up, one in three millennials (born between 1981 and 1995) in 2022 used hire purchase solutions such as “buy now, pay later” to cover the costs of social life. However, with more and more people spending faster than income (64 percent), just under a quarter of those surveyed (22 percent) assume they will have to forgo paying a less important bill in the next 12 months. For three out of ten respondents (31 percent), these are invoices from online retailers.
“Young people use ‘buy now, pay later’ offers to finance their social life. But it is precisely these bills that are not paid first when money is tight,” says Krehl, summarizing the results. “This is the first step into the debt trap. In addition, almost a third of those surveyed (31 percent) have less of an overview of their short-term loans than they did a year ago or do not want to know how much money they owe in total.”
But burying your head in the sand is not an option, agrees Klehr: “A general financial education enables you to make well-founded and effective financial decisions. With high inflation, rising interest rates and the rising cost of living, it is more important than ever for consumers to be informed and able to make smart choices.”
Image and text source: Fabit GmbH
