Many unemployed people in Saxony are going into debt

Many unemployed people in Saxony are in debt. According to statistics, 45% of people who took debt counseling in 2019 were unemployed. “It is in the realm of legends that debts are usually the result of a bad household. The trigger is usually just unemployment, illness or divorce,” said Zwickau MP Sabine Zimmermann.

“The best measure against debt is therefore job security, good wages and social benefits that guarantee a standard of living,” says Zimmermann. In the pandemic, his party is calling for unemployment and partial unemployment benefits to be increased and for the disability pension to be strengthened. It is paid if you cannot work for health reasons.

According to statistics, 17% of people who went to debtor counseling centers were mainly due to unemployment, while 16.5% were sick, addicted to drugs or had had an accident. Poor housekeeping was the main trigger in 18.4% of cases, and self-employment failed in 6.5%. For 9.8% of those affected, a separation or divorce played a decisive role.

Almost one in two over-indebted people (46.9%) had less than 900 euros in income. However, those affected also had higher debts, the higher their income. Most creditors were social security institutions (68.7%), followed by telecommunications companies (52.6%), insurance companies (38.1%), collection agencies (37%) , owners (34.4%), businesses (34%), energy companies (32%) and mail order companies (31.8%).

“The costs of daily living must not become a debt trap. Social housing and energy supply must be affordable and belong to the public sector,” said the MP. The government and municipalities of Saxony should initiate the turnaround. Rental coverage based on the Berlin model is also required.

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