Consumption culture, targeted marketing and quick payment solutions are enchaining young Swedish women. Over the last 10 years, their debt has skyrocketed, and nowadays the median debt of an 18-25 year old woman registered by the Swedish Enforcement Agency is only 50 kronor less than that of a young man – who would usually top the statistics.
– People who shop with Klarna think the money doesn’t exist – until they suddenly have to pay, said 17-year-old Nathalie in Gothenburg.
When looking at statistics of the number of indebted young adults in Sweden, one might be happy to see a downward-facing curve. In fact, since 2013, the number of individuals aged 18-25 who are registered by the Swedish Enforcement Agency has steadily decreased.
But this trend doesn’t tell the whole story. While the number of indebted 18-25 year olds is down with almost 25% compared to 2013, it’s on the rise again – and the total debt of this age group has doubled in 10 years.
The group behind the biggest share of the increase: young women.
As many as one fourth of all young Swedish women are so addicted to consumption that it sometimes affects their day-to-day life, according to a 2022 survey by the Swedish Enforcement Agency.
The reason young females in Sweden get behind with payments also differs from their male peers.
For both sexes, a majority of debt cases are private claims and refer to financial obligations to companies or other citizens. But among young women, these cases make up 83% – in comparison to 47% among young men.
Young Swedish women’s bad credit is not only a matter of study loans or mortgages, but also a result of shopping: clothing, decor, beauty products, and everything else that online retail has to offer. When payment solutions not only offer a 30-day payback time without any interest rate, but also an option to postpone the payment for a low additional price, unsustainable consumption becomes reality.
“I never want to become indebted”
Females in the Southwestern county Västra Götaland stand out in the national statistics on debt among women aged 18 to 25.
Since 2013, the average debt of young females from Västra Götaland registered by the Swedish Enforcement Agency has increased with 231%, ranking them fourth among all 21 counties. Similarly, their collective debt has upped with 129% over the same time period, ranking them sixth.
“Young people think paying is a problem for later,” said 17-year-old Vilda who was strolling around a shopping center in central Gothenburg with her friend Nathalie.
Would you yourself choose to pay with Klarna or any other online payment solution?
“I think I would get anxious, knowing that I had to pay money back. Instead of using Klarna and other solutions you need to realize that you don’t have the money and either start working extra shifts or just avoid buying stuff out of pure pleasure,” said Nathalie.
“In some situations it would be useful to use Klarna if you really need something and you know that you will be able to pay the invoice later. But you shouldn’t buy it, just because you want it,” Vilda said.
Debt creates economic and social exclusion
Becoming indebted at a young age is a crucial turning point for someone entering adult life. An indebted young adult may become economically and socially excluded and risk facing attachment of earnings or other assets. Payment notices may also cause exclusion from job and housing markets.
Turning 18 next year, both Nathalie and Vilda expressed fear of becoming indebted.
“I’m afraid of not being able to pay. I never want to become indebted. It feels so bad,” said Nathalie.
In order to avoid it, she creates personal budgets.
“During Christmas season, budget is super important, and I’ve set a limit for how much I can spend on gifts and such. It’s very useful.”
Vilda agreed.
“If I’m really not in need of a specific item, I won’t buy it. And if I know that I need to buy a lot during one specific month I plan in advance and look up cheaper alternatives.”
Data source: The Swedish Enforcement Agency
Additional calculations: Norah Lång