Debt in Germany: One in ten adults is over-indebted

Creditreform Debt Atlas One in ten adults in Germany is over-indebted

More than seven million people in Germany are considered over-indebted. According to the new “Debtors’ Atlas”, the most common reasons are illness, addiction or accidents as well as unemployment. There are big regional differences.

The financial situation of consumers in Germany has deteriorated and the number of over-indebted people has increased. 7.36 million people aged 18 and over are affected, according to the new “debtor atlas” from the credit agency Creditreform. That's a good four percent or 293,000 more people than in the previous year. The deadline was October 1st.

“The financial situation of private consumers has continued to deteriorate,” said the head of Creditreform economic research, Patrik-Ludwig Hantzsch. Above all, the sharp rise in living, energy and housing costs put a strain on household budgets. At the same time, the labor market situation continues to deteriorate. Anyone who is permanently unable to meet their financial obligations is considered over-indebted.

According to Creditreform, the current number of cases is not directly comparable with previous data due to a new calculation method. The values ​​for 2025 were recalculated retroactively using a mathematical-statistical procedure. This makes a comparison possible.

According to the study, the most common reasons for over-indebtedness are illness, addiction or accidents as well as unemployment. The number of over-indebted young adults under the age of 30 has risen above average. It increased by 5.8 percent to 1.17 million.

Sharp increase among young adults

Overall, people between the ages of 30 and 49 are most affected. “Especially the top performers in society, who are in the middle of their working lives and have to shoulder financial burdens, are feeling the consequences of the crises,” says Hantzsch. The expert does not expect any relaxation in the coming year. "The number of over-indebted consumers will most likely continue to increase."

Bremen has the highest over-indebtedness rate, i.e. the proportion of over-indebted people in relation to all adults (15.89 percent). This is followed by North Rhine-Westphalia (13.19 percent) and Saxony-Anhalt (13.08 percent). The lowest values ​​are achieved in Bavaria (7.58 percent), Baden-Württemberg (8.73 percent) and Brandenburg (9.15 percent). The rates increased in all federal states.

There are big regional differences. Over-indebtedness is lowest in the Bavarian districts of Eichstätt (4.75 percent) and Erlangen-Höchstadt (4.99 percent). At the bottom of the ranking are the cities of Gelsenkirchen (25.43 percent) and Bremerhaven (23.67 percent). The nationwide rate increased by 0.42 points to 10.58 percent.

For its “Debtor Atlas,” Creditreform evaluates anonymized data using official registers from online retailers and other sources. A distinction is made between “soft” pre-judicial over-indebtedness features such as dunning and debt collection procedures, “medium” ones such as seizures or enforcement, and “hard” such as personal insolvencies. A single reminder does not automatically result in a consumer being classified as over-indebted.