"The economic situation of Finns currently reflects two simultaneous, opposite phenomena," says Suomen Asiakastieto, one of the main providers of digital business and consumer information services.
According to its data released on Tuesday, the number of new payment defaults has started to decline, while the growth in the total number of people in default has also slowed significantly.
At the same time, though, more people are facing serious, long-term debt problems.
The number of people in long-term foreclosure proceedings rose by 23 percent in the first quarter of this year. As of the end of June, there were 20,600 such individuals, up from 16,500 a year earlier.
Long-term foreclosure cases are those in which garnishment of someone's wages or pensions has continued for at least 18 months within the past two years.
"This development is a direct signal that the debt problems that have already arisen are becoming more persistent and deepening. As a society, we must pay more attention to how we can support and help consumers struggling with financial difficulties at a much earlier stage than is currently the case – before the situation becomes such a deep crisis," Suomen Asiakastieto managing director Arto Paukku said in a press release.
Positive changes, too
On the other hand, Suomen Asiakastieto points to positive changes during the year.
The number of new payment defaults has started to decline, and the growth in the total number of people in payment default has slowed significantly, it said on Tuesday.
While the number of people who have defaulted on at least one payment is still close to the historical record at 387,300, "clear signs of a change in direction can be seen in the development of the first half of the year", the company said.
Between April and June, the number of people in default rose by much less than in the preceding quarter, and by more than one third compared to a year earlier.
