Understanding over-indebtedness before it makes you ill - how research can help

More than five million adults in Germany are considered over-indebted. In addition, there are partners, children and relatives who are also affected by financial difficulties. Despite this, scientists still know far too little about why people are in debt and what social and health effects this has.

Prof Dr Eva Münster, Professor of General Practice and Primary Care Research in Vulnerable Populations at the Institute of General Practice and Primary Care (iamag) at Witten/Herdecke University (UW/H), has drafted a position paper together with other partners to draw attention to the shortcomings in over-indebtedness research - and to propose solutions.

What we know about over-indebtedness - and what we don't know

"We know that sudden life crises such as a serious illness, a separation or the loss of a job can lead to over-indebtedness," explains Prof Dr Münster. "But there is still far too little research into how exactly shame, social pressure or breaks in biographies are linked to over-indebtedness."

Basic data is often lacking: There is no independent overview of how many people in Germany are actually affected by over-indebtedness and what debts they have. Not all debts are the same: consumer debt, rent arrears, property loans or even BaFöG (German Federal Training Assistance Act) repayments affect different life situations - and require different solutions. Debt counselling services have also worked without comprehensive scientific support to date, although their knowledge would be valuable in order to improve targeted support services. New risks such as digital consumer offers ("buy now, pay later") and the particular challenges faced by people experiencing poverty or migration have hardly been investigated. And although over-indebtedness is an international problem, there is a lack of dialogue across national borders.

This should change. The experts call for

- a comprehensive inventory of all existing data and studies
- the establishment of a permanent research network
- close cooperation between different disciplines
- the development of clear quality standards for over-indebtedness research
- stronger links between research, advice centres and politics

The social and health consequences of over-indebtedness can only be reduced in the long term if research, policy and practice work more closely together. "We are ready to continue our research together with other disciplines," says Prof Dr Münster. "Because only with sound knowledge can we better understand over-indebtedness - and help people more effectively."

Further information:

The position paper was developed in the Volkswagen Foundation-funded scoping workshop "Over-indebtedness and over-indebtedness research". In addition to Prof Dr Eva Münster (UW/H), Dr Sally Peters and Caro Berndt from the institut für finanzdienstleistungen e. V. (iff), Prof Dr Kerstin Herzog from RheinMain University of Applied Sciences and Prof Dr Patricia Pfeil from Kempten University of Applied Sciences were also involved.

The short version of the position paper: www.iff-hamburg.de/wp-content/uploads/2025/05/Positionspapier_Ueberschuldungsforschung-Kurzfassung.pdf