Germany Over-indebtedness Report: 5.67 million adults affected

The 2026 Over-indebtedness Report, published by the Hamburg-based Institute for Financial Services (iff), reveals that approximately 5.67 million adults in Germany were over-indebted last year, an increase of 111,000 compared to 2024.

Key drivers of financial distress include illness, addiction, or accidents (17.8%), followed by unemployment or reduced working hours (14.9%). High housing costs significantly exacerbate these pressures; while the average person spends 24 percent of their income on housing, those seeking debt counseling spend an average of 38 percent.

Single parents, particularly mothers, face disproportionate risks. Single parents with three or more children are 5.8 times more likely to be represented in debt counseling than their share of the general population. The report identifies the most common profile for those seeking counseling as male, single, and between the ages of 30 and 44. The average debt amount for analyzed cases was approximately 19,000 euros.