Sweden reports record high levels of consumer debt

A new poverty report from Sveriges Stadsmissioner reveals that nearly 500,000 people in Sweden—approximately 5 percent of the population—had debts with the Swedish Enforcement Authority (Kronofogden) or were undergoing debt restructuring in 2025. This represents the highest number of indebted individuals in over 20 years, marking a 13 percent increase since 2019.

The report highlights that poverty in Sweden has doubled since 2021, with 730,000 people currently living in poverty. Many individuals are reportedly using loans to cover essential costs such as food and rent as welfare protections fail to meet their needs.

Legal expert Ann-Sofie Henrikson argues that addressing this issue requires regulatory changes to curb risky lending practices. She emphasizes that lenders must be more responsible and that broader social interventions are necessary to combat the systemic issue of over-indebtedness.