Germany's Debt Dilemma: Struggling Economy Seeks Government Solutions
While most Germans oppose loosening the government's strict borrowing rules to address the budget crisis, many individuals are accumulating personal debts due to the deepening cost of living crisis. The pandemic and rising prices have led to a 30% increase in "buy now, pay later" schemes and smaller installment loans, with a rise in indicators of over-indebtedness. Debt advice centers are struggling to meet the demand, and concerns are growing that the situation will worsen if energy price caps expire. Memories of postwar reconstruction and the high cost of integrating East Germany have shaped Germany's debt-averse culture, with the word "debt" carrying the same meaning as "guilt" in German. Despite the crisis, Germans maintain high savings rates and a majority do not want the government to take on more debt.