New debts subject to collection were reported for 1.43 percent of Austrians, compared to 1.78 percent the previous year. At the same time, however, the average amount of debt increased by around 15 percent to around 405 euro (previous year: 355 euro). "The current trend is good news for domestic companies; the majority of customers pay their bills on time. Also, the average outstanding debt of 405 Euros per debt collection account can still be assessed as relatively low", said Boris Recsey, Managing Director of CRIF Austria. "However, it is a fact that every business transaction - in particular purchases on open account - carries some risk for the company. It may lead to liquidity shortages if customers don´t pay or pay late. In this case, CRIF primarily supports retail and e-commerce companies, but also banks and insurance companies, by providing relevant credit information for risk management."
On average, 5.5 percent of debts subject to collection were paid within 30 days (2015: 7 percent), and 12 percent of outstanding debts were paid within 31-90 days (2015: 14 percent).
Citizens of Burgenland in 1st place, followed by Tyrol and Lower Austria
Comparing the states, the citizens of Burgenland have, like last year, the best payment behavior. While Tyroleans and Lower Austrians have in the most part a positive payment behavior, the citizens of Vienna are placed the bottom of the ranking among the states. Almost twice as many consumers have debts subject to collection compared to the Burgenland.
1. Burgenland
2. Tyrol
3. Lower Austria
4. Upper Austria
5. Styria
6. Vorarlberg
7. Salzburg
8. Carinthia
9. Vienna
Fig. 1: Ranking of states by population with debts subject to collection
If the average amount of debt subject to collection is considered, a different ranking emerges: Lower Austria is in 1st place, where the average size of the exposure is around 390 euro. Lower Austria is followed by Carinthia (394 Euros) and Vienna (395 Euros). Last place is occupied by Tyrol with an average of around 429 euro of outstanding debts. Overall, there were significant increases in all states compared to last year - particularly in Tyrol and Styria, where the amount of debt subject to collection increased by around one-third (100 euro). Only in Vienna, the average exposure remained the same.
| | | 2016 | % Change |
|---|---|---|---|
| 1. | Lower Austria | 390 euro | +11 % |
| 2. | Carinthia | 394 euro | +10 % |
| 3. | Vienna | 395 euro | +/- 0 % |
| 4. | Burgenland | 397 euro | +14 % |
| 5. | Upper Austria | 406 euro | +10 % |
| 6. | Vorarlberg | 407 euro | +11 % |
| 7. | Salzburg | 421 euro | +20 % |
| 8. | Styria | 427 euro | +30 % |
| 9. | Tyrol | 429 euro | +32 % |
Fig. 2: Ranking of states according to the average amount of debt subject to collection
Women as a group have significantly lower arrears than men. The average exposure for men of approximately 478 euro is nearly a third higher than for women, with a value of around 333 euro. However, the growth in debt level was different between the sexes compared to the same period last year: 18 percent for men and 9 percent for woman. The average exposure increased the least for women in Carinthia and men in Vienna (+3 percent and +10 percent). The greatest changes were for women in Tyrol and men in Styria (+15 percent and +27 percent).
Many young people have high levels of debt
The CRIF survey also reveals that young people are more affected by high debts than the older section of the population. There are 14-times more people in the 20-24 age group with outstanding debts than in the 80-84 age group. The proportion of people 45 and older with debt subject to collection (only 6 times as many people as in the 80-84 age group) decreases sharply. "Not surprisingly, younger people in particular have a much worse payment behavior - their income is relatively low, but their consumer needs are very high," explains Recsey. "Judging by the amount of debt, younger and older people have the lowest average amount of exposure. This can be explained by the fact that in these stages of life only a limited income is available, whereas in the phase in which the income is usually at its highest, the average amount of the exposure is also the highest."
