All indebted consumers entered in the National Debt Register have almost PLN 45.8 billion to repay. There are almost 2.1 million such people with debts in our country, which means that the average debtor must repay PLN 21,940. With an average salary of PLN 5,968 net, you have to work 3 months and 20 days to settle this obligation. Just a year ago, the total debt reached PLN 45.2 million, and an unreliable consumer had to repay PLN 19,271, for which he had to spend his salary of 3 months and 18 days.
The KRD data also shows a significant difference between the current debt of women and men. The total debt of 743.5 thousand women amounts to over PLN 11 billion, so on average they have to repay PLN 14.9 thousand, for which they will work for 2 months and 15 days. In turn, 1.3 million men have to repay PLN 34.7 billion, so on average PLN 25.8 thousand. In order to get rid of the debt, they would have to spend their entire salary for almost 4 months and 10 days.
– Although inflation has stopped keeping Poles awake at night and in April this year amounted to 2.4%, let’s remember that a year ago it was 14.7%, according to data from the Central Statistical Office. Such rapid price increases have been a pain in the neck. Although wages also grew, they did not compensate for the higher costs of living. Analyses of data from the Central Statistical Office indicate that in May 2022 inflation outpaced the nominal increase in wages and this situation persisted for about a year. According to the KRD Savings Barometer, at the end of last year every fifth Pole had no savings at all, and one third would have had enough for a month. Only every fourth respondent claimed that they would be able to support themselves with them for a year. The increase in debt that we are currently observing is one of the effects of this situation. It must be remembered that financial problems usually grow slowly and over time – notes Adam Łącki, President of the Management Board of the National Debt Register of the Economic Information Bureau.
Taking into account the total amount of debt, consumers from the Masovian Voivodeship have the highest debt to repay (over PLN 6.5 billion), followed by the Silesian Voivodeship (over PLN 6.2 billion) and the Lower Silesian Voivodeship (PLN 4.1 billion).
Lublin Province has to work the longest
Comparison of the Central Statistical Office data on average earnings in individual provinces with information from the National Debt Register on average debt in them indicates that residents of the Lublin province would have to work the longest to repay their financial obligations. The total debt there amounts to over PLN 1.88 billion, and 79.2 thousand consumers must repay this money. With an average salary in this region of PLN 5,008 net, they would have to transfer their entire salaries from as many as 4 months and 22 days. In second place are people from Podlasie, among whom there are 42.8 thousand debtors. The average salary there is PLN 4,979, and the total debt is PLN 2.41 billion, which means that in order to repay it, they would have to return earnings from 4 months and 10 days. Residents of Świętokrzyskie are also in big trouble, where the total debt of 44.4 thousand consumers amounts to PLN 941.7 million. The average salary reaches PLN 5,004. The average debtor from this province has PLN 21.2 thousand to repay, for which he would have to spend the money he earned over 4 months and 7 days.
– It must be remembered that the average earnings reported by the Central Statistical Office, which amounted to PLN 8,271.99 gross in April this year, i.e. PLN 5,968 net, apply to the sector of companies employing 10 or more employees. These salaries are always slightly higher than the average salary in the entire economy. It can therefore be assumed that debtors would actually repay their liabilities longer, which may be even more worrying for them. Meanwhile, there are institutions that can effectively help with this. No one is able to allocate their entire salary to repay the debt, so it is worth talking to a debt collection company that will help divide the debt into installments adjusted to the individual financial situation of the debtor – explains Jakub Kostecki, President of the Management Board of the debt collection company Kaczmarski Inkasso.
Lower Silesia will repay its debts the fastest
In Lower Silesia, there are 199.5 thousand people registered in the National Debt Register, and their average debt is PLN 20.6 thousand. They earn on average slightly more than most of Poland – PLN 6,105. This means that in order to get rid of the financial burden, each of them should work for 3 months and 11 days, which is the shortest in the country. People from Łódź, where the average salary is PLN 5,438, will also repay their debts a bit longer – in 3 months and 13 days. There are 157.7 thousand debtors in the Łódź province, who must repay a total of PLN 2.94 billion. Each of them has PLN 18.6 thousand to repay. Residents of Wielkopolska, who are indebted for PLN 3.71 billion and earn an average of PLN 5,530, would also get rid of their debts relatively quickly. The average person with debts has PLN 19.2 thousand to repay, for which they would have to work for 3 months and 14 days.
Interesting conclusions can be drawn by comparing this list with the Consumer Reliability Index developed by the Reliable Company in cooperation with the KRD. Namely, of the top six provinces, whose residents need the least time to repay debts, three (Małopolskie, Wielkopolskie and Łódzkie) are among the most reliable, and three (Mazowieckie, Dolnośląskie and Śląskie) in terms of the reliability of their residents occupy the last positions in the ranking.
– These are wealthy provinces, where salaries are high. On the one hand, it is easier to take on debts, thanks to higher creditworthiness, but on the other hand it is also easier to repay them. And the question arises why then in some provinces this reliability is higher and in others lower, if economic conditions are similar. I am convinced that the answer lies in the mentality, in strong local ties, in pressure from the environment, taking its opinion into account, lack of acceptance for certain behaviors – comments Adam Łącki.
Source: KRD/BIG