Monday, 28 April 2008
48% Rise in Debt and Claim Cases
"The payment problems associated with consumer credit loans and instant loans are increasing at a brisk pace in Finland.
In 2007, Finnish district courts made a record number of decisions relating to cases involving debts and other claims.
The number of such cases was more than 113,000, which was higher than ever before in the past 20 years and more. When comparing with the previous year, the growth is as much as 48 per cent.
Moreover, the figures have doubled over the past ten years.
In some experts’ view, the increasing number of problems relating to debt collection is a sign of an upcoming recession.
”It is possible that debt collection becomes more active prior to a recession period, when companies are trying to collect all the money they can before individuals with payment difficulties are driven to insolvency”, says Antero Nuotto from the Helsinki District Court. "
You really wonder how and why people are able to accumulated so much debt. Finland is behaving in completely different way compared to continental Europe where a slow down in credit has already been perceived.
You can clearly see it on residential housing, where banks have not put any brake in lending money to people for buying an asset that is clearly inflated. Why do they do that? do they think they are smarter or are they just pushing people into trouble for profiting of the situation later??