Debt-Free Day Initiative Offers Relief to Households Amid Rising Debt Averages

The growing burden of debt among households has prompted the launch of the Debt-Free Day initiative, providing individuals struggling with debt a lifeline through a toll-free helpline and a dedicated website staffed by financial experts.

This year, the average debt in the Czech Republic stands at 35,000 Czech koruna, marking a nearly 20% increase from the previous year’s average of 29,500 Czech koruna. Men constitute a majority of the debtors, accounting for 56% of the total, with an average debt of 37,800 Czech koruna.

The Moravian-Silesian Region continues to grapple with the highest number of debtors, comprising more than 15% of the total, with an average debt of 32,500 Czech koruna. On the other hand, debtors in Prague carry the highest average debt load, amounting to 42,000 Czech koruna, representing 7% of all debtors.

These disconcerting statistics have been brought to light by Kruk Česká a Slovenská republika, in collaboration with the Ministry of Labor and experts from non-profit organizations, including Charity ČR and the Association of Civic Advice Centers, as part of the Debt-Free Day initiative. The principal reasons for debt non-payment continue to be unemployment and the weight of high loan repayments, which often go hand in hand.

Jaroslava Palendalová, CEO of Kruk Česká a Slovenská republika, stressed that many individuals find themselves in situations where their diminished income cannot cover their expenses, leaving them feeling uncertain about how to proceed. The Debt-Free Day initiative aims to provide much-needed assistance to these individuals.

The initiative is accessible through a toll-free helpline at 800 700 880 throughout the month of November. Additionally, individuals seeking guidance or answers to their debt-related questions can visit the website www.nasedluhy.cz. Furthermore, in collaboration with the project Kolikmam.cz, Kruk Česká a Slovenská republika offers free reports from the Central Register of Executions, providing valuable information about ongoing executions against the debtor.

Notably, the initiative also extends its support to Ukrainian citizens residing in the Czech Republic, offering guidance on effectively managing their finances within the country’s economic landscape and providing tips for safe borrowing.

Daniel Krištof, CEO of the Czech Ministry of Labor, highlighted the importance of building and maintaining a safety net to aid individuals in need during difficult times. He encouraged people to participate in the Debt-Free Day project, emphasizing that anyone can find themselves facing challenging financial situations, and it is crucial to provide a supportive environment to help them regain their financial footing.

Article by Prague Forum

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