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Debt
Wirtschaftab 9 J.
Money you have borrowed and must pay back. In Germany more than 5 million people are over-indebted – they can no longer service their debts.
Debt arises when you spend more money than you have. Debt in itself isn't bad – a mortgage, for example, is a sensible debt. It becomes a problem when debts get out of hand.
Over-indebtedness: if you can no longer service your debts with your income, you are over-indebted. In Germany this affects over 5 million people.
Most common causes: unemployment (25%), divorce/separation (14%), illness (11%), failed self-employment (8%), excessive consumption (7%).
Help: free debt counselling from Caritas, Diakonie, AWO and the consumer advice centres (Verbraucherzentralen).
Did you know? German private households have about €1.8 trillion in debt. More than 80% of it is mortgages – considered “good debt”.
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