Beware, debt trap: This is how young people in SH endanger their Schufa score!

Beware, debt trap: This is how young people in SH endanger their Schufa score!

In recent years, the consumer behavior of young people has changed significantly. Payment methods such as installment payments via Klarna or PayPal are increasingly coming into focus because they can quickly become a debt trap. How NDR reports, many young people endanger their Schufa score because they often make rash decisions and do not plan expenses responsibly. In Schleswig-Holstein in particular, it can be seen that half of the clients in debt counseling who are affected have accumulated debts through online shopping. Anouschka Haalck, an experienced debt counselor, is actively involved in raising awareness and runs simulation games in schools.

As part of such a simulation game at the Schleusen Community School in Brunsbüttel, students had to make do with a fictitious income of 1,350 euros and learned to plan their expenses realistically. “Buy now, pay later” offers are not only tempting but also risky. If, for example, 38% of all 20 to 24-year-olds in Germany are in debt to online retailers, that is a clear warning sign Environment in the classroom holds on. The new forms of payment and the immense pressure from social media make it difficult for young people to keep track of their finances.

Difficult financial situations

The challenges are great. A third of the clients who seek debt advice in Schleswig-Holstein are between 20 and 35 years old. This age group is increasingly turning into a worrying clientele. At least 20% of young people in Germany are in debt, often with telecommunications and online retailers. What is really alarming is that over 88% of young people in Germany see the risk of losing track of their finances.

In particular, the combination of the “buy now, pay later” mentality and a lack of financial education in schools leads to a threatening situation for many. The Conference of Ministers of Education and Cultural Affairs decided in 2013 to increasingly integrate the topic of consumer education into the curricula. Despite these requirements, implementation is often inadequate, so only a few schools offer targeted business lessons. How RBB notes, financial education in schools is currently largely non-existent, even though it is urgently needed.

Critical time for young people

A third of the clients in debt counseling are between 20 and 35 years old. This group is under immense pressure to increase their purchasing power with the help of loans or installment payments. Many young people see the immediate purchase options as a solution to their financial problems without considering the consequences. They must learn to deal with realistic financial situations and make responsible decisions when spending money.

To counteract this, numerous facilities offer open consultation hours for those affected. There are also 47 free advice centers in Schleswig-Holstein that can provide valuable support. Talking openly about money and debt is becoming increasingly important: Anouschka Haalck emphasizes how crucial it is not to make these topics taboo.

The new EU consumer credit directive, which came into force in November 2023, is intended to regulate small loans and new payment methods more strictly. It remains to be hoped that these measures will also have an impact on young people and support them on the path to more responsible financial planning.