Czech Household Debt

Analysis of the banking and non-banking sectors shows that people\’s payment morale in the Czech Republic is improving despite a significant increase in borrowing. Jiří Rajchl, executive director of the Nonbank Register, reported that non-payers\’ debt fell by SEK 4.1 billion to just SEK 32.4 billion.
vějíř kreditek

The increase in borrowing by applicants is due to rising property prices. In fact, most Czechs are borrowing for their own property. Those who realize mortgages also have a much better payment attitude. The number of people who have or are having problems repaying such loans has decreased by 3,864, and the number is now “only” about 20,000.

People are paying their debts only because unemployment is down and wages are up. In other words, they can afford to pay off their debt and are confident that they will be able to pay it back.

In the first quarter, the number of loans from mortgages and construction savings fell in most regions of the Czech Republic. On the other hand, the number of mortgages and loans increased in Central Bohemia, Pilsen, and Prague. In Prague, the number of people who took out consumer loans also increased.
napíchnutá brambora

The situation is different for short-term loans. Here, there was an increase in most regions of the Czech Republic. Short-term loans were most prevalent in Prague at 3.4%, an increase of almost 8,700, and in South Bohemia again at 2% (i.e., an increase of 3,000 over the same period last year)

The most significant decrease in short-term loans was in the Usti nad Karlovy Vary region In both regions, almost a quarter of the population is indebted, but in Usti Nad Rabem and Karlovy Vary they decreased by 2.4% and 2.3%, respectively. At the end of the first quarter, the number of short-term loans in the region was “only” 23% of the population. In Visovina, only about 18% of such loans were recorded.

In these two regions, the number of people having trouble repaying their debts, whether mortgages or consumer loans, has declined.

Most importantly, think carefully about loans. There is no point in taking out a loan for a gift or a holiday. Rather, it is better to spend it on what you need.