Debt crisis for Norwegian households / News / The Foreigner

Debt crisis for Norwegian households. Norwegians’ personal economy is not as solid as it seems despite rumours the recession is over. Old debts, increased credit card use as a form of financing, and more restrictive banks are taking their toll. Figures from debt-collectors the court system, and established estate agents show things have not been as bad since the ‘90s. 9,477 homeowners have faced compulsory sale in the first six months of this year, mostly in Oslo.

house, compulsory, sale, debts, bills, bailiffs, mortgage, home, oslo, crisis



The Foreigner Logo

The Foreigner is an online publication for English speakers living or who have an interest in Norway. Whether it’s a glimpse of news or entertainment you’re after, there’s no need to leave your linguistic armchair. You don’t need to cry over the demise of the English pages of Aftenposten.no, The Foreigner is here!

Norske nyheter på engelsk fra Norge. The Foreigner er en engelskspråklig internett avis for de som bor eller som er interessert i Norge.

Google+ Google+ Twitter Facebook RSS RSS



News Article

LATEST:

}

Debt crisis for Norwegian households

Published on Wednesday, 8th September, 2010 at 13:32 under the news category, by Michael Sandelson   .

Norwegians’ personal economy is not as solid as it seems despite rumours the recession is over. Old debts, increased credit card use as a form of financing, and more restrictive banks are taking their toll.

For sale sign
For sale sign
Photo: Real Estate Pix/Picasaweb


Figures from debt-collectors the court system, and established estate agents show things have not been as bad since the ‘90s.

9,477 homeowners have faced compulsory sale in the first six months of this year, mostly in Oslo.

“It seems a growing number are losing control of their economy,” Alexander Dey, head of the city’s bailiffs tells Dagsavisen.

He believes this is just the tip of the iceberg. Many have managed to avoid parting with their home by making alternative arrangements and most cases never get as far as his desk.

“Only 7-8 percent [of these] end up in court. The debt-collection system takes care of the rest. Those who default on their credit cards are struggling with an interest rate of between 20 and 30 percent,” he says.

Pre-recession mortgage interest rates of up to 10 percent and job-losses are also to blame, according to Tor Aaserød, whose firm assists the bailiffs with forced sales.

“They might have managed the mortgage instalments, but not the phone bills and tax demands under forced realization,” he says.

Oslo bailiffs estimate they will receive up to 27,000 cases this year.

“It looks as though many are living beyond their means,” says Dey.




Published on Wednesday, 8th September, 2010 at 13:32 under the news category, by Michael Sandelson   .

This post has the following tags: house, compulsory, sale, debts, bills, bailiffs, mortgage, home, oslo, crisis.





  
Do NOT follow this link or you will be banned from the site!