Job loss, illness and irresponsibility: why do Slovaks end up in overdue debts?

This results from a survey of the debt collection company EOS KSI Slovensko conducted by AKO on a sample of 1,000 respondents who answered the question: In your opinion, what best describes the emergence of overdue debts in you or in your neighbourhood?

Up to 30.1% of respondents blame irresponsible behaviour and 9.5% blame rising living standards for their debts.

Further, young people aged 18-33 years were above average in citing housing (36%), food prices (27%), inflation (27%) and family expansion with children (11%) as factors causing overdue debts.

Single parents were above average in citing the cost of housing and the price of food. Single parents with one child were even more likely to mention inflation and the energy crisis.

Irresponsible behaviour was more commonly reported by men (35%), 66+ year olds (39%), university educated (41%), multi-generational households (36%).

Increase in living standards was reported above average by people with lower educational attainment, from the Prešov and Košice regions.

Overall, up to 68.4 per cent of Slovaks believe that marketing acts as a trigger for pre-existing risk and encourages debt. "The data clearly show that while the objective causes of debt are job loss or inflation, subjective factors such as irresponsibility and the pursuit of a higher standard of living are closely related to marketing," confirms Václav Hřích, director of the research agency.

Experts from the debt collection company EOS KSI Slovensko point out that the prevention of debt is above all long-term planning of the family budget and the continuous deferment of money during the year. It is important to avoid impulsive online purchases, which are usually the result of marketing pressure, and to compare prices with an emphasis on quality but affordable alternatives. Not only teaching financial literacy in schools, but also having an open conversation within the family about the value of money and that not everything they see on social media is essential to own.

"Our experience shows that overdue debt is not just a number. Behind every case is a story of a person whose life has been changed - whether by job loss, health problems or a bad financial decision. That is why we see our role not only in finding the least painful solutions, but also in education. Prevention is always better than dealing with the consequences," confirms Peter Dvornák, Director of EOS KSI Slovakia.