– The level is back to where it was before the pandemic, and we expect an increase in the future, says Stian Arnesen in the debt collection company Intrum to news. The pandemic led to a decline in Norwegian debt collection. There was less to spend money on, and less to consume. Intrum, which is among Norway’s largest money collectors, is now one of several companies that are noticing an increase. Arnesen points to the high electricity prices, diesel prices and food prices as factors that contribute to the increase. And now also the interest rate increase. On Thursday, the interest rate was raised to 1.25 percent – an increase of 0.5 percentage points. At the same time, Norges Bank announced that the interest rate will continue to rise to 1.5 per cent in August, and to be 3 per cent in the spring. Changes in the key policy rate take effect on the first working day after the decision has been made. – Increased interest rates are another factor that will affect people’s personal finances and make it more difficult. It comes with inflation and higher prices, says Arnesen. Yesterday’s announced rise in interest rates means that the banks are raising interest rates on your loan. With an interest rate increase of 0.5 percentage points, you have to pay around 5,000 more each year, per million you have in loans. A loan of NOK 3 million will then, for example, cost you NOK 15,000 more each year. Concerned about low-income families It is especially people and families with low income and / or high debt ratio that Arnesen in Intrum is concerned about. – The vast majority of Norwegians are well equipped in the face of high interest rates and prices, but there will be greater tension in the team, he says. The single parents’ association is also very worried about the interest rate hike. Leader Cathrine Austrheim says the association has received several inquiries today. Leader of the Lone Parents Association, Cathrine Austrheim, says many of their members are both desperate and worried Photo: Private – There are people who are desperate. They wonder what it takes to make ends meet. They are basically resourceful. If they are not financially, they are in other ways. Now they see that a 100 percent position does not cover the expenses when they are alone with 2-3 children, says leader of the association, Cathrine Austrheim to news. Austrheim says people who have previously managed to pay the bills on time, have recently struggled to make ends meet. – No longer feel resourceful Several of them own housing, she says: – Basically, they see themselves as resourceful people. These are the ones we now receive inquiries from, because they no longer feel resourceful. Otto Havneraas in the debt collection company Collectia Group says the company notices that the debt collection requirements are at the same level as before the pandemic. – We believe the interest rate increase may affect the amount in the future. I think the interest rate will increase quite a lot for the mortgage to be in default, perhaps also the electricity bills. But there are other types of receivables that may have to suffer as a result of increased mortgage costs, says Havneraas to news. He emphasizes that it is difficult to predict how many debt collection claims will be sent to Norwegian households when the interest rate increase takes effect. At the same time, he points out that there are several factors that affect an increased amount of debt collection claims. – It is generally actually the price growth, electricity prices, fuel prices, a number of needs that everyone has. Everyone needs fuel, electricity, most people probably notice.
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Interest rates are raised – fears more debt collection claims – news Norway – Overview of news from different parts of the country
