Norwegian debt problems mount / News / The Foreigner

Norwegian debt problems mount. Norwegian shoppers are paying dearly for their open wallets. An increasing number are finding their piggybank is empty. The problem is worst in Oslo. The first six months of 2010 saw a 56 percent increase in applications for debt negotiations compared with the same period last year. A lot of cases involve credit cards “There may be many who’ve tried to let things slide quite a long way, but the economic reality catches up with them in the end,” Alexander Dey at the bailiff’s office tells Dagens Næringsliv.

debt, borrowing, credit, cards, consumer, spending, oslo, trondheim, lindorff, bailiff, alexander, dey, kristine, gjerstad, marthenotoey, lilly-kristine, iversen, gjensidige, christian, haraldsen



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Norwegian debt problems mount

Published on Tuesday, 10th August, 2010 at 13:44 under the news category, by Michael Sandelson   .

Norwegian shoppers are paying dearly for their open wallets. An increasing number are finding their piggybank is empty.

Security: Brass padlock on credit card
Security: Brass padlock on credit card
Photo: mayamaya/Shutterstock Images


Big city, big bills

The problem is worst in Oslo. The first six months of 2010 saw a 56 percent increase in applications for debt negotiations compared with the same period last year. A lot of cases involve credit cards

“There may be many who’ve tried to let things slide quite a long way, but the economic reality catches up with them in the end,” Alexander Dey at the bailiff’s office tells Dagens Næringsliv.

Debt collection agency Lindorff’s information manager, Kristine Gjerstad, says their cases have gone up 24 percent in the first half of this year.

No boundaries

Marthe Notøy, head of section at Oslo bailiff’s office believes many live beyond their means. However, she says people from all walks of life often end up having payment problems.

“We mainly deal with those without a solid economy because they’re living on benefit, have been ill, or are drug addicts on the road to recovery that begin cleaning up their finances.”

The rest of the country has also experienced an increase. Lilly-Kristine Iversen, an advisor at the bailiff’s office in Trondheim says she’s experienced the same.

“Some have been unemployed. People of all ages contact us, from 20-year-olds to those well over 70.”

“Responsible”

Meanwhile, head of information for Gjensidige, Christian Haraldsen, believes borrowing is the way to go. He claims the worst effects of the global recession have passed.

“We’ve probably seen the back of them. Many find consumer loans to be a useful product, so we find it natural to offer them as a financial group. It’s unfortunate that a few have had repayment problems. That’s why we have a strict credit-rating system,” he says.



Published on Tuesday, 10th August, 2010 at 13:44 under the news category, by Michael Sandelson   .

This post has the following tags: debt, borrowing, credit, cards, consumer, spending, oslo, trondheim, lindorff, bailiff, alexander, dey, kristine, gjerstad, marthenotoey, lilly-kristine, iversen, gjensidige, christian, haraldsen.





  
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