Sweden poverty report: 500,000 people facing heavy debt

The 2026 Poverty Report by Sveriges Stadsmissioner reveals that approximately half a million people in Sweden are heavily indebted. Currently, five percent of the population has debts with the Swedish Enforcement Authority (Kronofogden) or is undergoing debt restructuring, representing a 13 percent increase since 2019.

Jonas Rydberg, Secretary General for Sveriges Stadsmissioner, states that this debt is not driven by luxury consumption but by 'survival consumption'—the desperate need for funds to cover basic necessities such as rent and food. The report highlights that debt among young adults has doubled over the last decade.

The report also notes that the liberalization of the credit market and the erosion of the welfare and social insurance systems have contributed to the crisis. Stadsmissionen is calling for stricter credit assessments and suggests that loans granted to individuals who clearly lack the ability to repay should be invalidated.