One in ten adults in Germany shows signs of over-indebtedness, Creditreform says

Some 10.16 percent of adults in Germany, or 7.36 million people across the country, are showing at least one of the early warning signs of over-indebtedness. The figures come from a report by Creditreform, the country's leading business information agency.

Creditreform's 2026 report says the rate has risen significantly over the past year. A year ago, the rate among German adults was 9.74 percent.

Founded in 1879, Creditreform is known as a credit rating agency and also for providing debt collection services.

Patrick-Ludwig Hantzsch, head of the agency's economic research department, said: 'The financial situation of private consumers in Germany has deteriorated further. In particular, the cost of living, energy costs and housing costs have risen sharply, putting enormous pressure on spending.'

He said insufficient employment opportunities were adding to the concern. In the newly published report, Hantzsch said: 'In recent months, many well-paid jobs have been cut, especially in the manufacturing sector.'

The report says the number of adults receiving payment reminders before legal action is taken has risen, which is itself a sign of excessive borrowing.

Creditreform said consumers are now taking on debt even for small purchases. Borrowing in this way, they are in many cases increasing their spending. As spending rises, interest rates are also rising.

Creditreform's research says the rate of over-indebtedness is higher among men than women. That is not new; the trend has been visible for a long time.

Among men, those in the middle of their working lives, aged 30 to 39 and 40 to 49, are at the greatest risk of being affected, Creditreform also said.

However, the number of people overwhelmed by debt is growing fastest among young people under the age of 30.

Among Germany's states, the rates of over-indebtedness are highest in Bremen, Berlin, Saxony-Anhalt and North Rhine-Westphalia. The economically prosperous states of Bavaria and Baden-Württemberg have the lowest rates.