The number of over-indebted consumers in Germany is projected by the economic research firm Creditreform to continue rising this year. Patrik-Ludwig Hantzsch, head of Creditreform’s economic research, warned to the “Handelsblatt” that he predicts a further significant increase due to high cost pressure and a weak labor market. He noted that even relatively small additional burdens can trigger financial distress for households that already have little financial cushion.
The Federal Consumer Protection Ministry views this trend with concern. A ministry spokesperson acknowledged to the “Handelsblatt” that the worries and hardships associated with rising debt rates are being taken “very seriously.” While the implementation of the EU Consumer Credit Directive has significantly expanded lending protection regulations, the federal government plans to allocate additional funds between 2026 and 2029 to facilitate access to debt counseling services.
At the political level, the CDU faction is focusing primarily on tax relief. Sebastian Steineke, the faction’s consumer protection representative, told the “Handelsblatt” that the goal should be to prevent people from falling into debt in the first place, not just helping them afterward. He called for the planned income tax reform starting in 2027 to permanently alleviate the burden on small and medium incomes. Furthermore, Steineke demanded stricter measures against abusive and hidden price increases and stronger oversight by the Federal Cartel Office.
In contrast, the Green Party’s consumer politician, Till Steffen, is advocating for an expansion of debt counseling. Describing the situation as “dramatic”-given that the proportion of indebted adults is increasing sharply-Steffen insisted that affected people must have early access to independent, free advice. He also called for stricter regulation of rents and an end to the practice of shifting basic property taxes onto tenants, arguing that this measure would provide immediate relief without costing the state anything.
