Dresden. There are often many bills to be paid at the end of the year. Christmas in particular often tears a hole in the wallet of those who don’t have much anyway.
And then there was the corona pandemic: the debt in Dresden 2020 hit even more than in previous years in districts with social problems.
In order not to increase the inequality any further, the city of Dresden again draws attention to the free offers of the debt counseling centers at the end of the year. At the same time, many Dresden residents who normally work in the catering, service or cultural sectors also have money problems.
City sounds the alarm: Many can no longer pay
“Many people have financial difficulties and can no longer meet their payment obligations,” the city is now sounding the alarm. The main reasons given are short-time working, empty order books and job losses.
Under the motto “We won’t leave you in the dark!” should be encouraged to seek help at an early stage if it becomes foreseeable that debts will soon no longer be able to be paid off.
The city says the burden should not worsen. The employees of the subsidized advice centers work free of charge and anonymously if requested.
Above all, you are there to gain an overview of your own finances, but also to negotiate solutions with creditors and to give those affected a perspective again.
Overall, the debt in Dresden remained relatively constant until October 2020. However, the gap between the districts is getting bigger and bigger. 41,625 people, around every 11th Dresden resident, had landed in the debt trap by this date.
According to the 2020 Debt Atlas, the districts of Gorbitz, Pieschen, Niedersedlitz and Prohlis were particularly affected by over-indebtedness. Gregor Gantert, who works at AWO debt counseling in Prohlis, had already drawn attention to the effects of the pandemic on the financial situation of many Prohlisers in autumn.
The seriousness of the situation will only become apparent in early 2021
“What worked well before is no longer working because of Corona,” said Gantert at the time. This is mainly due to the fact that many people in neighborhoods like Prohlis have precarious jobs that have often been lost due to the pandemic.
The overdraft facility is quickly overdrawn and contracts can no longer be served. Thomas Schulz, authorized signatory at Creditreform in Dresden, assumes that the overindebtedness rate will increase significantly in 2021.
“The effects of the corona pandemic have not yet reached consumers,” said Schulz in the fall when presenting the debt atlas.
How the numbers develop in Dresden and nationwide will only be shown by the statistics in the first quarter of 2021. Much also depends on whether the aid payments for troubled industries reach those affected more quickly in the next few weeks and months – and whether the infection situation calms down and easing is possible.
Meanwhile, the city of Dresden is relying on comprehensive clarification. Five advice centers offer free help: The non-profit organization Striesen-Pentacon, the AWO in Pieschen, Prohlis and Gorbitz and Caritas in Johannstadt.
The first consultation always lasts 1.5 hours. Depending on the individual needs, between five and 20 additional hours of consultation may be necessary.
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