More than a quarter of indebted Slovaks, up to 27.9 percent, admit that overdue debts negatively affect their relationships with family and friends. This is according to a survey by the debt collection company EOS KSI Slovakia conducted by the AKO agency.
One in ten debtors struggles with feelings of depression, 8 percent experience stress, nervousness, or fear. More than 12 percent of respondents directly confirmed that overdue debt has disrupted their interpersonal relationships, with almost 8 percent experiencing constant arguments and 4.2 percent losing the trust of their loved ones.
Authentic statements from respondents who decided to speak openly about their feelings and family relationships affected by overdue debts:
'I hide it so they don't know, and it's strange. Family pressures for payment and makes it quite clear that one is irresponsible in this matter. It was a tense situation; I had nothing to repay with and had to borrow for installments. In everyone's eyes, I was insolvent, irresponsible. My family blames me for my mistake and wants to disinherit me. Since I'm nervous, I tend to be unpleasant to them. I have depression, sleep poorly, I can't handle it. If I died, they would have to pay it for me. I can't even go on a small one-day trip with my son. I'm afraid to spend even one cent on myself when everything is expensive. I refuse all invitations to family celebrations so I don't have to buy gifts because I have to pay off debts, I don't celebrate any of my holidays, and I don't invite anyone from my family over because I can't afford to entertain even my closest family.'
Overdue debts are therefore not just a financial problem. 'It is therefore important to pay attention to financial literacy and prevent the emergence of bad debts,' says Peter Dvornák, director of EOS KSI Slovakia. A bad debt can also be, for example, paying for a vacation that exceeds an individual's financial capabilities.
Debts weigh most heavily on those living with family
The survey results further showed that the relational impacts of indebtedness vary significantly by household type. The most vulnerable groups are single parents with one child – up to half of them confirmed that debt negatively affects their family life. An even higher proportion, 52 percent, was reported by adults living with parents without financial contribution to the household.
'Among adults living with parents, feelings of dependency and reproach often accumulate, which can deepen tension and disrupt relationships. Single parents, on the other hand, bear all the financial burden alone and live in a sensitive situation where every expense puts pressure on the budget,' states executive manager Peter Čanda.
People with basic education from the Prešov and Trenčín regions are most affected by the disruption of relationships caused by overdue debts. Surprisingly, it's not always just people with the lowest income. Negative impacts are also reported by households with incomes up to 1800 euros.
Why vacation is a bad debt and advice on what to do about it
Up to 11.3 percent of respondents with debts admitted that they borrowed specifically for a vacation. However, short-term rest can have long-term financial consequences. While the vacation experience itself lasts only a few days, loan repayment can stretch for months, often years – frequently with high interest rates.
'Rest on vacation is important for mental health, but its financing should not threaten the financial stability of an individual or the entire household. It is much more sensible to choose a cheaper alternative, plan ahead, and create a financial reserve, rather than borrowing and later facing the risk of indebtedness or debt traps, and the associated pressure on relationships and mental health,' advises Peter Dvornák, director of EOS KSI Slovakia, in conclusion.
SUMMARY
Respondents who admitted the impact of debts reported several negative effects:
- Internal feelings: 10% feel depression, 8% stress, nervousness or fear, 4.2% a sense of exclusion, 1.9% shame, and 0.4% dependency.
- Disruption of relationships: 12.6% of respondents confirmed general disruption of relationships, 5.4% deteriorated relationships, and 4.6% significant impact on interpersonal relationships.
- Communication problems: 7.7% experience constant arguments, 3.1% feel that their loved ones don't talk to them, and 1.1% reported deteriorated communication.
- Loss of trust: 4.2% of respondents admitted losing the trust of their loved ones due to debts.
Respondent reactions:
- Agreement with the statement 'My overdue debt affects my relationships with family and friends': 27.9%. Above-average agreement was expressed especially by younger people aged 18-49, men, people with primary or secondary education without a high school diploma, as well as respondents from the Prešov and Trenčín regions. Households with lower income (up to €1800), single parents, and adults living with parents recorded a stronger representation of agreeing responses. Two-thirds of people with overdue debts agree with this statement.
- Disagreement: 34.7% completely disagree
- Uncertainty: 17.8% of respondents could not express an opinion"
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