Debt Collection in Bulgaria Registers Monthly, Annual Increases

According to the ACABG, debt collection improved in June 2012 as compared to June 2011 and May 2012. Photo by Sofia Photo Agency

The Association of Collection Agencies in Bulgaria (ACABG) has registered monthly and annual increases in debt collection in June 2012.

The debt collection index has been keeping track of the changes in household debt since January 2010, when it was provisionally set at 100 points.

The index totaled 119.3 in May 2012 and increased to 121.9 in one month.

According to ACABG analysts, the increase is due to the higher seasonal employment in the summer and the lack of heating bills and lower electricity bills.

ACABG points out that summer jobs have led to an in crease in debt collection rates.

Since it is mostly young people who go to work at seaside resorts, the summer season boosts their financial stability, ACABG experts argue.

The Association reports a 23% increase in debt collection among people aged up to 30 years in June 2012.

The trend for accumulating debts on consumer loans persists, with a considerable 3% increase to 28% registered in June 2012.

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