In 2024, Poles took on a record amount of private debt, and one age group in particular now holds the crown as the most “unreliable” for making back repayments.
The amount of private debt in 2024 jumped to 760 billion zlotys (€181 billion), amounting to an increase of 39.7 billion zlotys compared to 2023, according to data from the Credit Information Bureau,
In the structure of debt from credits and loans at the end of December 2024, two credit products accounted for over 91 percent of all debt: housing loans and cash loans. Mortgages dominated, accounting for 68.9 percent (524.3 billion zlotys). Cash loans were in second place, with a value of 173.5 billion zlotys (22.8 percent).
Like citizens of any other country, Poles take out credit loans to pay for various services or products, especially if they do not have cash on hand. This can include renovating apartments, buying a car, paying for a wedding or funeral, or consumer goods purchases.
Other credit products make up a smaller percentage of debt, including 29.9 billion zlotys for installment loans, 13.9 billion for credit cards, and non-bank cash loans reaching 6.9 billion.
Poles are borrowing more money outside of bans as well, with non-bank loans amounting to 21.7 billion zlotys. Almost 70 percent of sales are cash loans and 25 percent targeted loans.
However, Poles are not always paying back their debts on time. The InfoDług Report, prepared on the basis of data from the BIG InfoMonitor Debtor Register and the BIK credit information database, shows that from September 2023 to September 2024, unpaid non-credit and credit liabilities increased by 2.9 billion zlotys (3.5%), reaching a record level of 86.5 billion zlotys. The number of debtors reached 2.7 million people. The number of people who have both credit and non-credit arrears reached 485,000.
The largest group of unreliable payers is Generation Y, i.e. 35-44-year-olds, where 657,205 people have financial problems. However, there is one 68-year-old resident of the Lublin region with a dizzying amount of unpaid debt exceeding 90 million zlotys. The oldest debtor-record holder is 74 years old.
“A loan or credit is a natural phenomenon these days. Choosing the right offer is crucial for the subsequent repayment of the obligation. In order to make a wise decision about a loan or credit, you should consider what you want to borrow money for, how much you need and how long you intend to repay it. When lending money, the bank calculates creditworthiness. This is security for both parties. By verifying the amount that the client wants to borrow, the bank checks whether the client will be able to repay the obligation. In order not to fall into the debt trap, the client should estimate whether they will be able to repay the installments in addition to current obligations: rent, bills, food, medicines, etc,” says Małgorzata Witkowska, an expert from the Corporate Communication Department at PKO Bank Polski.
She added that the most important thing is to pay attention to the APR and the total cost of the loan for Poles.
“APR includes not only the interest rate of the loan, but also the fees related to the loan: commission for granting the loan, interest, insurance, if it is required or the client decides to have it, other fees related to the loan. It is also worth checking the total cost of the loan and the total amount to be repaid, to have a full picture of the loan being repaid,” she said.
The loan period is also important, she says. The length of the repayment period affects the amount of the monthly installment. A shorter repayment period means higher installments, but lower total costs of the loan or credit. In turn, a longer period reduces the monthly burden, but increases the total interest.
“You should carefully recalculate the loan terms, early repayment terms and realistically assess your financial capabilities. Before taking out a loan, it is worth thoroughly analyzing your household budget and determining how much you can afford to spend on a monthly installment without giving up other obligations and basic expenses,” said Witkowska.
