The number of defaults will decrease for the first time in 13 years

The number of defaults will decrease for the first time in 13 years

The number of defaulting consumers in Finland decreased last year for the first time since the figures provided by Asiakastieto, a financial data service company, in 2008.

The data showed that at the end of 2021, there were a total of 389,300 people in insolvency pensions, which is about 2,900 less than 12 months earlier and reverses the upward trend in insolvency that has lasted for 13 years.

The 2021 figures also showed that the number of new defaults decreased compared to last year.

According to the credit rating agency, the number of late payments under the age of 30 has been declining for a long time, and a similar trend can be seen in the wider population.

In the older age groups, however, the situation has deteriorated, as those over 60 had more defaults in 2021 than in the previous year.

According to Asiakastieto’s content manager, the general decrease in omissions may be due to several different factors Ville Kauppi.

"Apparently, Finns have been able to adjust their consumption and consumption as needed, and the uncertainty caused by the coronavirus pandemic is not reflected in the default statistics, although it was feared in advance," Kauppi wrote in a press release.

He added that making use of positive credit information has also been helpful.

Positive credit information describes a consumer’s ability or willingness to meet their payment obligations and includes information about, for example, the credit applicant’s previous loans, installments and possible payment delays.

Asiakastieto’s online service provides positive credit information to 1.5 million consumers.

Source: The Nordic Page




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