The PRL generation is up to its ears in debt. The expert points to two reasons

The PRL generation is up to its ears in debt. The expert points to two reasons
The PRL generation is up to its ears in debt. The expert points to two reasons
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PLN 24.3 billion are arrears of the so-called generation X due to late payment of current bills, installments of loans and credits. According to the data collected in the Register of Debtors BIG InfoMonitor and the BIK database, people aged 45-54 owe almost every third zloty from the entire pool of arrears of Poles.

According to the data collected in the BIG InfoMonitor Register of Debtors and the BIK credit information database, so-called generation X (people born in the 1960s and 1970s) owe almost every third zloty from the entire amount of arrears attributable to Poles. As stated, the prolonged economic problems resulting first from the pandemic, and then from high inflation and higher interest rates, are the most severe for people aged 45-54.

“PLN 24.3 billion – arrears of generation X due to late payment of current bills, installments of loans and credits” – the report states. As indicated, over the 12 months to the end of Q1 2023, the sum of unpaid liabilities of this age group increased the most compared to the entire society – by over 9%. (PLN 2.1 billion). However, the average amount of arrears is almost PLN 5,000 lower than a year ago and amounts to PLN 42,200.

11.4% are currently struggling with financial problems. people belonging to generation X, i.e. 576.7 thous. people – by 13.7 thous. more than last year. “Although 45-54-year-olds in society are not the largest age group (…) it is they who account for the largest part of all overdue liabilities, which at the end of March this year amounted to almost PLN 79.8 billion” – noted the authors of the study. As assessed by the president of BIG InfoMonitor, Sławomir Grzelczak, there are many reasons for this state of affairs, including same mentality of 45-54 year olds. “The characteristic feature of generation X, growing up in the period of economic changes and great unknowns, also known as the generation of the Polish People’s Republic, is a strong desire to possess. These people often define their status through the prism of accumulated goods, and this makes them more willing to take on various kinds of commitments,” Grzelczak said.

He added that the period of life is also of great importance, which places 45-54-year-olds among children entering adulthood – those who no longer receive the 500 plus benefit, but often still unable to support themselves – and increasingly older and less coping parents.

“Both of them require their help, which is followed by specific expenses. The situation is even more difficult because it is the generation of 45-54 year olds has, on average, more offspring than those born later. In the current conditions – high rental prices, high interest rates on loans – it is difficult to do without parental support. It’s also hard to move out. Poland is one of the EU countries with the highest share of households with at least three adults living under one roof. In 2021, this percentage was as much as 45 percent. and was more than twice as high as the European Union average,” noted the president of BIG InfoMonitor.

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Among the other sources of difficulties of generation X, he mentioned e.g. poorer health of parents requiring more expenditure on treatment and alimony awarded as a result of divorces. “Commitments that could easily be met together, are sometimes unbearable alone, even becoming the basis for declaring consumer bankruptcy” – concluded Grzelczak.


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The article is in Polish

Tags: PRL generation ears debt expert points reasons

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