In Switzerland, every second household was in debt in at least one way in 2020. In addition to vehicle leasing and mortgages, arrears are also widespread.
Published: 04.07.2022, 23:18—
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Many people in Switzerland are in debt.
Photo: Urs Jaudas
In 2020, 42.9 percent of the population lived in a household with at least one type of debt. According to a survey by the Federal Statistical Office, three or more types of debt accumulated in 7 percent of households.
According to figures published by the FSO on Monday, 15.5 percent of households have at least one leased car. This makes vehicle leasing the most common type of debt in Switzerland, ahead of arrears (14.9%).
Mortgages (with the exception of mortgages on the main residence) followed in third place. It occurs in 12.1 percent of households, followed by debt to family and friends (8.4%) and installment payments (6.8%). Other types of debt are small or consumer loans, overdrafts or unpaid credit card bills.
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If you add up all types of debt, two out of five households (42.9%) are indebted in one way or another.
Payment arrears in a good 15 percent of households
In the 2020 reporting year, almost every sixth person lived in a household in which bills – for example for rent or running costs such as electricity and gas, health insurance or taxes – were not paid on time. Tax bills and health insurance premiums were paid the least: 7.5 percent of the population paid taxes too late, 5.5 percent the health insurance premiums.
The age and socio-demographic distribution of people with arrears was striking: the older someone is, the less often they are in arrears with their payments, as the data shows. In addition, people with a higher level of education are less likely to be in debt. In addition, it is not surprising that households with higher incomes are less likely to be late in paying.
On the other hand, households with children were affected more often than average. Almost one in five (18%) had a payment arrears on their account. Almost a quarter of the single parents had payment arrears.
Young accumulate debt
The younger generations between 18 and 24 are particularly often represented among those who have accumulated at least three different types of debt. More than one in nine of them lives in a household in which at least three types of debt have accumulated.
According to the survey, only people without gainful employment (15.9%) and those who, according to the Federal Statistical Office, belong to the group of “people with material deprivations”, i.e. are poor, have even more types of debt.
The figures collected come from the SILC (Statistics on Income and Living Conditions) survey, which is carried out across Europe. They refer to the time before the corona pandemic.
