– We have had a formidable increase in the subject of finance. It is simply enormous. People who have not had a hard time before are now making contact, because they have had financial challenges. They simply don’t have food on the table at Christmas, says Gry Heggås Jensen, who heads Church SOS in Nord-Hålogaland. The country’s largest 24-hour crisis service always has a lot to do at Christmas time, but this year the nature of the inquiries has changed. Not only are there new people on the phone. Many more than before are calling to talk about increased interest rates, more expensive food and higher electricity costs. – Finances can cause sleepless nights and arguments in the home. There are also families with two incomes who cannot manage it. It is a very serious situation, says Jensen. Less financial security Both houses, electricity and food have become more expensive for people in the past year. Norges Bank has carried out six interest rate hikes since the New Year, the last one for the time being in mid-December. The key interest rate is now 2.75 per cent, and further increases are expected in 2023. The war in Ukraine has also led to food and electricity becoming more expensive. Although the state pays part of the bill when it comes to electricity, many people have had to tighten their belts. According to a report from Oslo Met, people’s financial security has declined sharply in the past year. The report shows, among other things, that seven out of ten households have had to make changes to make ends meet. Two-thirds have tightened their consumption in order to afford the electricity bill. One in twelve is responsible for meals, visits food stations or has to get help from NAV to buy food. Bishop in Nord-Hålogaland, Olav Øygard. Photo: Pål Hansen / news – The picture is that many more people need help with food. Not only at Christmas, but elsewhere as well. It is a real concern for many people in Norway today, says bishop in Nord-Hålogaland, Olav Øygard. He is afraid it is easier to see the distress that is far away from us. – We have money that we can give away, whether it’s to the Red Cross or Church Aid. But then we may not see that there is a neighbor who is having a hard time, and who needs us to invite them for a cup of coffee or to have a chat, says the bishop. – Difficult to make changes Linda Tofteng Eliassen is a consumer economist at SpareBank 1 Nord-Norge. She regularly meets people who are struggling financially. She recognizes herself in the picture drawn by Kirkens SOS. – I have met people who have become bad parents, impatient lovers, unfocused workers. It goes beyond sleep, and you don’t take care of yourself. Unsecured finances create both physical and psychological problems, says Eliassen. Linda Tofteng Eliassen, consumer economist at SpareBank 1 Nord-Norge. Photo: Marit Garfjeld / news According to the consumer economist, most of us have to put up with both higher interest rates and more expensive electricity, but that it can be difficult to make changes in spending. – It is very difficult to make adjustments, because everything we have done that deals with money is a bit “who we are”, says Eliassen, and points out that Norwegians spent almost as much money in December this year as in 2021. I think “new poverty » will be a common word in 2023 The Church’s SOS receives around 200,000 calls a year from people in crisis. More and more of these therefore concern economics. According to TV 2, the number of inquiries about finances increased by 28 per cent from November last year to November this year. Gry Heggås Jensen in Kirkens SOS fears “new poverty” is a word that will be used a lot in 2023. – We humans are good at coping with challenges when they come along. But now the tower is so high that it topples too many. This could be the start of something we have no idea the extent of, says Jensen.
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Called about financial challenges – news Troms and Finnmark
