Germany sees rise in consumer payment difficulties and insolvencies

Data from the credit agency Schufa indicates an increase in consumers facing financial difficulties in Germany, driven by high living costs and economic weakness. The proportion of consumers with payment disruptions rose to 8.1 percent last year, up from 7.9 percent the previous year. Schufa CEO Tanja Birkholz noted that while more people are experiencing first-time financial bottlenecks, she does not characterize the situation as a widespread debt crisis.

Private insolvency filings also saw an increase, rising by 8.3 percent to 88,000. Additionally, insolvency data from the IWH shows that the number of insolvencies for both individuals and corporations rose significantly in September, reaching 1,666 cases—an 85 percent increase compared to the average September between 2016 and 2019.

Regarding credit accessibility, individuals with negative Schufa entries face stricter conditions for loans. While most consumers maintain positive records, those with defaults or insolvency proceedings may find options limited and more expensive. Recent regulatory changes in 2025 have also introduced shorter storage periods for certain one-time payment disruptions under specific conditions.