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– Instead of admitting that finances are not enough, many choose to buy on credit, Geir Grindland, general manager of the debt collection company Inkassopartner AS, tells Vi.no.
Grindland fears that many will take Black Friday on credit and won’t have the money to pay with when the bill arrives.
– As a result, many people are left with a lump in their stomach when the bill is due. They know very well that the money has to be paid back, most likely with a very high interest rate, she says, and points out that many are still paying on Black Friday from last year.
– The increase in debt collection for 50-60 year olds increases
He points out that Norwegians have a consumer debt of around NOK 150 billion (figures from Debt register). A recent report by The Danish Financial Supervisory Authority on consumer debt trends concludes that the percentage of new and defaulted consumer debt to be recovered by debt collection agencies has increased, from 9.8 per cent at the end of 2021 to 12.7 per cent at the end of the first mid 2022.
– It’s a rather frightening moment, in which we see an increase in debt collection cases against 50-60 year olds; if we compare with last year, there is a 20 percent increase. And we think it will increase significantly in the future, says Grindland, and points out that he fears that it is precisely in this age group that we will find more than those still paying on Black Friday last year.
And according to Finanstilsynet’s report, credit usage so far in 2022 has increased in age groups 50 and over – while there has been a decline for age groups under 50.
Geir Grindland, managing director of debt collection company Inkassopartner AS, believes that many people are unaware of the consequences of payment notices. Photo: private
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Fears many do not know the consequences
– While a good number have control over how they’ll be able to pay back any money they use with their credit card, there are plenty of indications that this isn’t the case for everyone. Unfortunately, many are unaware of how big the consequences of receiving payment advice can be, says Grindland.
He says that in the worst case you can have problems with, among other things, renting a house, taking out a mortgage and making contracts for cell phones, electricity and insurance.
– The payment reliefs come only after the conciliation board and the bailiff have intervened, which indicates that it is very serious, he adds.
Earlier we talked about the sharp increase in the number of applications for debt settlement that the bailiff is experiencing. With a debt agreement, you enter into an agreement with your creditors about repayment – and the most common is a five-year contract period. The debtor has failed to pay during the agreement period, it will be written off. You can read more about the conditions for obtaining granted a debt agreed in this article on Vi.no (click here).
– Many people think that banknotes disappear if they are hidden in a drawer or thrown in the trash. Meanwhile, the debt mounts and you could risk receiving payment notices, payroll deductions and, in the worst-case scenario, foreclosures, Grindland warns.
– Get in touch as soon as possible!
– When your bill is overdue and you happen to become one of those who fall into a collection trap, the most important thing you can do is contact your creditors or the person you owe money to. Preferably as soon as possible, Grindland urges.
This is also the call of the Justice Foundation, which also offers general debt advice with the Help with debt service:
– For God’s sake: don’t wait! If you’ve been deferring finances and already notice that this could be problematic, contact your bank right away to take measures before you end up in financial difficulty. We are genuinely concerned that people are waiting too long, Tor Bernhard Slaathaug of the Justice Foundation tells Vi.no here.
Grindland says it can be uncomfortable and embarrassing for many people to make contact – which is also confirmed by what Hilde Slyngstadli of the South-Eastern Police District District Attorney’s Office previously told Vi.no:
– Financial problems are one of the few taboos we have left in our open society, and poor financial control and a large debt burden can be hard to bear. Mental challenges will then easily follow financial problems, she says here.
Grindland says most collection companies and companies you owe money to will be willing to enter into a possible repayment agreement if you show that you want to make amends.
