Analytics, Financial Services, Latvia, Loan
International Internet Magazine. Baltic States news & analytics
Thursday, 28.03.2024, 23:51
Number of borrowers struggling to pay off loans grew in 2018 - watchdog
The total debt obligations of Latvia's residents have been growing at an increasing rate each year, Vitolina said, adding that the amount of non-bank loans issued in 2018 grew by 7.29% or EUR 43 mln against 2017.
The total value of non-bank loans issued in 2018 was EUR 630 mln.
The steepest growth was recorded for payday loans (42%), consumer loans (20%) and leasing (30%).
Vitolina said that most often people take loans to pay off their bills or debts (38.89%), to buy food and household goods (27.59%), and to buy or repair transport vehicles (27.3%). "Taking a loan to pay off a debt is the most unpleasant trend, as this is not the best financial solution," said Vitolina.
A PTAC survey reveals that 77% of people spend more than planned during their summer holidays, and later 34% have difficulties covering these expenses. 11% of respondents in the survey admitted they had to borrow from a lender, relatives or friends to pay off their debts after the vacation.