Geldfit warns of rising prevalence of hidden debts

Geldfit has identified a trend of ‘hidden debts’ where individuals do not recognize their financial obligations as actual debt. According to Pauline van Brakel, director of Geldfit, these issues often remain undetected because they do not arrive in the form of formal collection letters.

The organization highlighted four recurring situations that constitute unrecognized debt:

• Buy now, pay later services (such as Klarna), which are often viewed as convenient payment methods rather than loans. • Multiple payment arrangements that, when combined, significantly reduce monthly disposable income. • Overdrafts and credit card usage, where interest can cause balances to grow unnoticed. • Loans from family or friends, which are often left unaddressed due to feelings of shame.

Geldfit encourages individuals to use their anonymous online test to gain insight into their financial situation and provides referrals to appropriate assistance to prevent these issues from escalating.