Danes in Debt: More Danes have become bad payers - but individually they owe less

A recent analysis by Experian reveals a concerning trend in Denmark's RKI register, the nationwide database of bad debtors used by businesses and the government. At the end of 2023, 173,093 people were registered as bad payers, marking a 1.3 percent increase from the end of 2022. 

Bo Rasmussen, the director of Experian, outlines that the higher interest rates and the increased cost of living have diminished the purchasing power of many, leading to difficulties in timely bill payments. 

However, while more Danes have fallen into the category of bad payers, the average amount owed has decreased. On average, individuals in the RKI register had unpaid bills of just over DKK 48,700 last year, compared to DKK 55,000 in 2022.

However, this seemingly positive trend is viewed as a sign of weakness by Experian. Bo Rasmussen notes that the decline in the average amount owed indicates that more people are struggling to pay even smaller bills.

Examining the long-term trend, the number of bad payers had been decreasing until 2021. However, over the past two years, there has been a reversal, with a growing number of individuals facing financial challenges. Experian anticipates this trend to persist in the coming quarters, reflecting the ongoing economic impact on the Danish population.

The consequences of being listed in the RKI register are significant, affecting one's ability to secure loans and other financial services.

To exit a debt registry, individuals can speed up the process by paying off outstanding debts. However, they can also reach out to the creditor who put them on RKI. Either way, with sophisticated creditworthiness assessments solutions like Monthio’s that can accurately and instantly identify a consumer’s financial health , banks and other financial institutions can adjust their willingness to lend accordingly.