Inflation: High living costs, weak job market – Germany facing a wave of overindebtedness
First over-indebted, then insolvent: High inflation is causing more and more private households problems. The situation could worsen. The federal government views the development with concern.
The number of indebted consumers in Germany is expected to rise further this year due to high cost pressure and a weak labor market, according to credit reporting agency Creditreform. In 2025, the number of adults with debt rose by 111,000 to nearly six million, with both persistent payment difficulties and "hard" debt, which involves legal documentation of financial problems, increasing.
The situation is concerning, with high living costs, a weaker job market, and depleted financial reserves posing significant risks, and economists warn of rising costs for fuel, energy, and food. The number of consumer insolvencies also rose by 8.4% in 2025 to 77,219, with a 6.0% increase in the first quarter of 2026.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
