Bulgaria's New Debtors – Young Adults With No Stable Income

Business | March 12, 2014, Wednesday // 17:27|  views

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The new debtors in Bulgaria are mostly young people who draw fast credits for electronic gadgets and don't pay them back.

According to the Association of collector agencies in Bulgaria, the profile of default debtors has shifted from the middle-aged men who in 2007-2008 drew large credits for cars and homes to young adults in their early 20's with no stable incomes who want to buy consumer electronics, but cannot afford it and don't pay back the loans. 

“They want it all and they want it fast”, Borislav Hristov of the Association, quoted by the Darik national radio. “They want the expensive parties, the expensive trips and the most high end consumer electronics.” 

According to the collection companies the youth draw loans for BGN 400 to 1500 to buy symbols of status, whereas previously people were buying home appliances. About 15% of those new fast credits are default.    

“There is a new trend emerging – grandparents paying off the credits of their grand children,” Hristov said.

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Tags: default, loan, fast credit, income, debtor, electronic, symbols of status


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