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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 14:18

Krediidiinfo: 87,000 Estonian residents have long-term debts

BC, Tallinn, 14.10.2014.Print version
According to the Krediidiinfo data of last month, 87,000 residents of Estonia have a long-term debt, which means that a person has not been able to fulfil their commitment during one year, LETA/Public Broadcasting reports.

Krediidiinfo deputy director Alar Jäger told Public Broadcasting's radio news that the vast majority of debts are small, the median is a few thousand euros. However, there are also instances where a person has had to give up their home due to a debt.

 

Banking Union's financial education panel head Triin Messimas said that the main mistake that adults make in money matters that is that they don’t make plans. Messimas said that the most common excuses cited are that, if the income is small, there is no point in planning and they cannot save, because they hardly cope with their costs by the end of the month.

 

However, in most cases, people think that they should compile a budget and save as well. "The problem is that the knowledge is there, but the habit or experience is not," said Messimas.

 

Jäger said that while the PISA tests in summer showed the good financial literacy of Estonian children, there will always be people whom no training or campaign can change.

 

"We have followed these processes in European countries, and unfortunately it is so that 2-3% of all people are absolutely not able to self-evaluate their commitments," said Jäger. This means that when adults, many people take financial obligations that they cannot cope with.






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