Exactly how many people in Luxembourg are affected by over-indebtedness, the phenomenon in which households are unable to meet their financial responsibilities, remains a dark number in Luxembourg. Bailiffs, banks, municipalities, and phone operators have no official figures of the files they process.
The medico-social league's Christian Schumacher explained that they have noticed that usually, the league is the first service that people in debt feel brave enough to consult and discuss their problems with. This is why the first service the league offers is exactly that: listening to people struggling. In the first meeting, Schumacher explained, the league listens to clients and tries to understand how they got to that point and when the situation became acute.
One recurring issue the league has noticed is something that affects almost half of the people seeking their help, namely that they've taken out credit abroad, specifically in Belgium. Schumacher explained this can be attributed to it being easier to get credit there than in Luxembourg. Often, Luxembourgish bankers would tell individuals already having multiple loans or credits opened that they will not be able to afford another one. Then, as Schumacher said, they go to Belgium, which is where loans are offered in newspapers and on adverts without asking questions.
It is quick and anonymous, which is where the draw lies. Schumacher believes education and information is required when it comes to loans and credit cards. After all, he stressed that he does not wish to denigrate loans on the whole, as without them, the majority of the population would not be able to purchase a car. Where something needs to change is general awareness - people must be aware of their expenses, how much they're spending and can afford to spend.
Over-indebtedness is ultimately a structural issue and one which can only truly be solved with a societal paradigm shift.
