Average Debt of Czech Debtors Significantly Increased in 2022, According to Kruk Analysis

The average debt of people with overdue obligations increased significantly last year, while it decreased for four years until 2021. In 2021, the average debt was 26,500 crowns, while last year, the average overdue debts rose to 39,200 crowns, an increase of 12,700 crowns. Analyses of client data from the KRUK company show a sharp increase in the obligations of Czech debtors.

As in previous years, overdue debts are held mainly by men (53% of debtors), who also have higher obligations (an average of 40,700 crowns).

Most Czechs with overdue debts come from the Moravian-Silesian Region, accounting for over 15% of Czech debtors with an average deficit of 37,600 CZK. The Central Bohemian Region has 12% of debtors and an average debt of 37,300 crowns, while the Ústí Region has 11% of debtors and an average of 39,700 crowns.

Debtors from the South Bohemian Region have the highest average debt, approximately 43,200 CZK. The Vysočina Region has the fewest debtors (four percent), with an average debt of 42,500 crowns.

Tax and social insurance debtors could be forgiven penalties

“Last year was very challenging for most Czech households regarding their ability to repay their debts. Increased energy prices and inflation created enormous pressure on domestic family budgets, which also explains this sharp increase in the average debt across all regions,” said Jaroslava Palendalová, CEO of KRUK.

“In case the debtor cannot currently repay their obligations for some reason, it is essential to contact the creditor in time, explain the situation to them, and look for a joint solution on how to proceed,” she added.

A third of debtors are aged 25 to 34

Czechs have overdue financial obligations primarily in their productive age. Almost 31% of Czech debtors are between 25 and 34 years old, with an average debt of 35,200 crowns. The age group of 35 to 44 years represents 27% of debtors with an average debt of over 43,000 crowns. Less than five percent of debtors with an average deficit of 22,600 CZK are 18 to 24 years old. Around seven percent of debtors are over 65 years old and owe an average of almost 39,300 crowns.

“Our data analysis also shows that almost half of the debtors have not started repaying their obligations. At the same time, we repeatedly encounter debt accumulation, with nearly a third of debtors having over one overdue debt.