Monday, October 20, 2025

Polaris of Enlightenment

More Swedes apply for debt restructuring – but most are rejected

Welfare collapse

Published 28 September 2024
– By Editorial Staff
More and more Swedish households are having their applications for debt relief rejected.
2 minute read

Applications for debt restructuring remain at a high level, but six out of ten applications are not granted, according to the Swedish Enforcement Authority’s statistics for the first half of 2024.

During the first six months of the year, more than 17,000 people applied for debt restructuring, an increase of just over 23% compared to the same period in 2022. However, just under four out of ten applications are granted.

Many applications are rejected because they do not meet the strict requirements for debt restructuring, according to the Swedish Enforcement Authority in a press release.

Per-Olof Lindh, Department Head at the Swedish Enforcement Authority, explains that many applications concern people with more temporary financial problems, a group for which debt restructuring is not intended.

– Many applications are about more temporary financial difficulties, and that is not the group debt restructuring is aimed at. Debt restructuring is not a shortcut, but a last resort, he says.

The above tweet translates to: “Marianne calls the Swedish Enforcement Authority because she has been refused debt restructuring“.

Tough requirements

In order to be granted debt restructuring, the applicant must be able to show that their debts cannot be repaid within 7-15 years and that attempts have been made to improve the financial situation, which may involve taking initiatives to reduce expenses, increase income or get control of a gambling addiction.

– We always advise to be proactive. Don’t wait to act until you get an answer to your application, the risk is that debts will only continue to increase, says Lindh, urging those who need advice to contact the municipality’s budget and debt counselor.

A worrying trend is that more older people are applying for debt relief. The number of applications from women over 65 has increased by 13% since the beginning of the year.

– Many older people find it difficult to control their income and have been hit hard by the increased costs of recent years. There are many in the group of older people who probably meet the requirements, but who have not previously applied for debt relief.

There are also large regional differences. In Västerbotten County, the number of applications has increased the most, by 28%, while Kronoberg County has seen a decrease of 25%. At the same time, the number of applications in the 18-30 age group has decreased by 13% compared to the same period last year.

Facts about debt restructuring in Sweden

Debt restructuring usually involves paying off part of your debt according to a payment plan and living on a subsistence level for five years - any income above that is used to pay off the debt. You are debt-free when the debt restructuring ends.

Before applying for debt relief

  • Contact the person you owe money to. You may be able to agree to split the payment or find another solution.
  • Try to increase your income, for example by looking for a job, applying for benefits you may be entitled to or selling things you don't need.
  • Pay your debts as best you can - if you have a wage garnishment, this is one way to pay.
  • Avoid taking on new debts.
  • Make a budget and adjust your finances so that you can survive month to month on what you get to keep after wage garnishment.
  • Review your costs, there may be cheaper options for your fixed costs or subscriptions, and subscriptions you can do without.
  • Seek help from budget and debt counseling in your municipality.

Source: via.tt.se/Kronofogden

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Growing number of Swedes living in poverty

Welfare collapse

Published today 12:46
– By Editorial Staff
For the most vulnerable, every day becomes a struggle when the safety net fails.
1 minute read

An increasing number of Swedes are living in material and social poverty. According to this year’s poverty report from Sweden’s City Missions, poverty in Sweden has nearly doubled since 2021.

Last year, 698,000 Swedes lived in some form of poverty, according to the report. The increase in poverty in Sweden stands out across Europe, particularly in terms of speed – having nearly doubled in four years. Jonas Rydberg, secretary general of Sweden’s City Missions (a charitable organization), believes the rising poverty is largely due to the economic downturn and sharp increases in food prices.

But what we can show in our report is that it’s also because it’s becoming increasingly difficult to have one’s rights met. For example, financial benefits. They are inaccessible and difficult to obtain, he says in Nyhetsmorgon.

Rydberg notes that many of those seeking help from the city mission don’t receive the general social insurance benefits they’re entitled to, making it significantly harder to manage daily life. Social welfare support, for example, has become more complicated to obtain and the payments are very low.

It has become increasingly difficult and the ultimate safety net is being eroded in Sweden.

The Swedish government recently presented a welfare reform that involves stricter requirements for social benefits, with the goal of getting more people into work. According to Rydberg, the proposal risks instead pushing more people into poverty.

It’s difficult and the labor market in Sweden is not accessible, he states.

Definition of poverty among adults in Sweden

An adult is considered poor if they lack the financial means to meet at least five of the following basic needs:

  • Eat protein-rich meals (meat, fish, chicken or vegetarian) every other day
  • Maintain a satisfactory indoor temperature in their home
  • Invite friends and family over or meet them for meals or coffee at least monthly
  • Have access to the internet
  • Manage to regulate loans and pay bills on time
  • Have a small amount available for personal expenses weekly
  • Own at least two pairs of functional shoes suitable for different weather conditions
  • Replace broken or worn-out furniture when needed
  • Participate in leisure activities with some regularity
  • Buy new clothes when the old ones are too worn
  • Handle an unexpected expense of €1,200 (the amount is adjusted periodically)
  • Take a week-long vacation away from home annually
  • Own a personal vehicle

Source: Sveriges stadsmissioner (Swedish City Missions)

Finland was a European model – now homelessness is rising again

Welfare collapse

Published 18 October 2025
– By Editorial Staff
Getting off the streets is extremely difficult once you end up there.
3 minute read

Finland has long been a model in the fight against homelessness, but now the trend is reversing.

For the first time since 2012, the number of homeless people is increasing – and street homelessness among young people is rising sharply.

Julius Virtavuori has lived without permanent housing for over two decades. When Yle (Finnish public broadcaster) meets him at the Tupa supported housing facility in Helsinki, Finland, he reflects on his situation.

— It’s quite a long time. I think these are probably the last years I’ll be in this situation. There are apartments in Finland after all.

The hardest part is the feeling of lacking goals, he tells them.

— You take one day at a time. There’s nothing to build your life on long-term. And the side effects that homelessness brings – a certain use of intoxicants. That boom is long past for me, now I just take it easy.

Successful model under pressure

Julius’s situation is not unique, but Finland has for many years worked systematically to reduce homelessness. The country has been a pioneer in Europe, primarily through the so-called “Housing First principle”.

The model means that homeless people first receive their own apartment with a rental contract, and then support services tailored to individual needs. Instead of requiring people to first solve their social or health problems to qualify for housing, the order is reversed – housing comes first. The approach has received broad international attention and shown good results.

But according to a recent report from the Housing Finance and Development Centre of Finland (formerly ARA), the trend has been broken. For the first time since 2012, homelessness is increasing again.

At the end of 2024, 3,806 homeless people were registered in Finland. Particularly alarming is the increase in rough sleeping – people sleeping outdoors, in stairwells, or in temporary shelters. A total of 649 people lived under these conditions, which is 230 more than the previous year.

However, the figures are only indicative, as homelessness is difficult to measure exactly. A person who sleeps at an acquaintance’s place one night may be forced to sleep on the street or in a stairwell the next night.

“Very alarming”

Emergency housing units report a sharp increase in young people falling outside society’s support measures and being forced to sleep on the street.

Jussi Lehtonen, service manager at the organization Vailla vakinaista asuntoa (Without Permanent Housing), has worked with homelessness issues for over 30 years. He sees the increasing youth homelessness as particularly worrying.

— It’s very alarming, because young people have their whole lives ahead of them. It shows for years afterward if they end up in that situation. And it would be very important to get them out of that situation quickly, says Lehtonen.

He believes that homelessness is often a consequence of too few affordable homes combined with cuts in benefit systems, which has made it harder for people with small incomes to manage financially.

— Ending up on the street is harmful in many different ways. For some, homelessness becomes chronic. The social network is reformed, and you have quite a lot to do with people who are on the street. Anyone understands that’s not good, Lehtonen states.

Germany’s pension shock: people must work until at least 73 years of age

Welfare collapse

Published 9 October 2025
– By Editorial Staff
In Germany's increasingly deteriorating welfare climate, Chancellor Merz is now signaling a dramatic increase in the country's retirement age - while money continues to flow to Ukraine.
3 minute read

While Berlin sends billions to Ukraine and turns a blind eye to migration costs in Germany, voices are being raised for Germans to work longer to save the welfare system. German Federal Chancellor Friedrich Merz (CDU) is preparing the country’s residents for a longer working life.

According to a new proposal, the retirement age in Germany could gradually be raised to 73 years as part of the government’s attempt to save an increasingly strained welfare system. Critics warn that the ideas about retirement age 73 lack both realism and fairness.

Friedrich Merz has stated that Germans must get used to the idea of less leisure time and longer working lives to finance pensions, healthcare and elderly care.

Meanwhile, economic analyses show that the country’s former strength as the EU’s economic engine has turned into stagnation. The deficit in public insurance systems is growing rapidly and several German states report shortages of both personnel and funding in healthcare.

The government’s expert council now warns that demographic developments require decisive action – more workers, higher fees and later retirement.

Money to Ukraine prioritized

But while Germans are urged to work until well after 70 years of age, Berlin continues to send billions to Ukraine. According to German media, the military and humanitarian support amounts to well above 40 billion euros since 2022.

Critics argue that the current government simultaneously fails to address the homeland’s own financial problems. The growing national debt, rising energy prices and weak industrial production have put welfare under severe pressure – but aid to Kiev remains unchanged.

Many Germans therefore wonder how the country can afford to finance the war abroad but not its own pensions.

Tens of billions of euros in German taxpayer money go to Ukraine every year. Montage. Photo: U.S. Marine Corps/Sgt. Samuel Fletcher, President Of Ukraine

Immigration’s impact

The official explanation for the crisis is an aging population. But several economists argue that the problem rather lies in the extensive immigration over the past two decades.

According to calculations by pension researcher Bernd Raffelhüschen, many newcomers contribute less to the social system than they receive back, especially during their first years in the country.

In an interview with German tabloid Bild from October 2024, he said that immigration will not save either the economy or welfare – rather the opposite.

Other experts also argue that integration problems and low employment among certain immigrant groups have become a long-term structural concern for the German economy. Despite this, the issue receives limited space in political debate.

Montage. Photo: Amisom, Pexels

The chancellor’s dilemma

The Federal Chancellor thus faces a double dilemma. On one hand, the finance ministry demands reforms to avoid collapse in the welfare system. On the other hand, new cuts and raised retirement age risk increasing discontent among voters who already feel that burdens are distributed unfairly.

The opposition, particularly Alternative for Germany (AfD), has quickly exploited the situation and describes the proposal as a betrayal of the country’s workers. Meanwhile, Merz tries to maintain a hard line against criticism and present the reform as a necessity.

But more and more Germans are now asking the question: why should citizens work longer, while billions continue to flow to both Ukraine and a costly migration system that few still believe will pay for itself?

FACT BOX: Germany's welfare system under pressure

  • Pension system: The statutory retirement age in Germany is currently 67 years, but proposals exist to gradually raise it to 73.
  • Economy: Germany's GDP growth has fallen to below 0.5 percent during 2024–2025, resulting in high inflation and reduced industrial production.
  • Support to Ukraine: Since 2022, Germany has allocated over 40 billion euros in military, economic and humanitarian aid – the second largest contribution within the EU after the USA.
  • Migration: Around 17 million people in Germany have foreign backgrounds. Integration and social expenditures are estimated to cost the state over 30 billion euros annually.

Swedish preschool chain extracts millions – children get less butter

Welfare collapse

Published 2 September 2025
– By Editorial Staff
Tax funds finance preschool – butter is portioned out in the smallest possible amounts.
2 minute read

The Swedish preschool company Hagvidson has extracted millions in profits in recent years. Meanwhile, the company is rationing butter and sandwich toppings for preschool children.

Hagvidson currently owns over 21 preschools across Sweden, including facilities in Falun, Stockholm, and Uppsala. The preschool company has grown significantly in recent years and has purchased ten new preschools during this period. During the same timeframe, the owners – three men from the Örebro region in central Sweden – have extracted €6 million in dividend payments.

The men have taken director fees and salaries totaling around €900,000, which is primarily based on tax funds and municipal preschool funding.

Despite the million-euro profits, the company is strict about imposing restrictions on the children, according to an investigation by the Schibsted newspaper Aftonbladet. The restrictions primarily concern children eating too much sandwich toppings, but also include limits on paper towel usage for both staff and children.

We need to think about how much butter we put on the sandwiches and the amount of toppings – more is being used than usual right now. If we want to keep using Bregott (a popular Swedish butter-margarine blend), we need to be mindful of this”, states a protocol sent to employees, which the newspaper obtained.

Half a cheese slice

One solution from the preschool company is for adults at the table to portion out the butter to ensure children don’t take too much from the package themselves. Furthermore, only one topping per sandwich is allowed, something that employees at one of the preschools also confirm.

The children get half a cheese slice or half a thin slice of turkey on their sandwich and eat a maximum of two slices of bread – one soft and one hard per day – yet this still seems to be too much, the educator tells Aftonbladet.

Hagvidson’s CEO Michael Enghag declined an interview regarding the children’s restrictions on sandwich toppings, citing the company’s “communication policy”.

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