Since the beginning of the year, the debt owed by Swedish individuals to the National Debt Office has risen by SEK 10 billion (€850 million) to a record SEK 129 billion (€11 billion).

At the same time, the authorities themselves warn that indebtedness can lead not only to permanent poverty, but also to social exclusion and mental illness.

– There are often a lot of tears, despair, and you don’t really know what to do or how to get out of the situation, and you blame yourself a lot for getting your family into this bad situation, Marita Sturesson, chairwoman of the Professional Association of Municipal Budget and Debt Counselors (kommunala budget- och skuldrådgivare ie. BUS), told the tax-funded Swedish Broadcasting Corporation (SR).

“It’s mainly debt related to consumption, which has risen sharply – including loans, credits and installments related to travel or online shopping”.

Davor Vuleta, spokesman for the Swedish Enforcement Authority’s private finance unit, says there has also been a 42% increase in unpaid student debts to CSN.

– I think this situation is very worrying and very serious. The consequences can be that you fail to become debt-free, that you get caught in the debt trap, that you end up in financial exclusion, which leads to social exclusion and ultimately mental illness, he warns.

– We know that debts to the Swedish Enforcement Authority are strongly associated with mental illness.

“Lived a good life”

BUS has also noticed a change where more and more Swedes, even those with “good incomes”, are coming to them for debt advice.

– This new group has often lived a very good life, has a nice house, nice cars and indulges in many things, but now that everything has become more expensive, there simply isn’t enough money. They have been living beyond their means” says Marita Sturesson.