Online shopping and rising living costs driving young Finns into debt
"People have the need or desire to consume, but their purchasing power is no longer enough to match their spending habits," Nors said.
He said the biggest underlying factor was the decline in purchasing power.
"If wages are low and living costs continue to rise, it puts young people's finances in a vulnerable situation," he explained.
The average debt recorded in enforcement proceedings now stands at 2,168 euros.
I had a similar thought when I read that Apple was starting an upgrade program with Klarna. People don’t have purchasing power but they want to buy more stuff.
As component and RAM shortages drive prices higher, Apple is reportedly launching an “Apple Upgrade” program for leasing new devices. According to Bloomberg’s Mark Gurman, it will work similar to a car lease, with options to upgrade to a new device early, or keep or return the device at the end of the lease. Gurman says Klarna will be Apple’s financial backer for the new program, which will require a soft credit check to sign up.
You have to wonder about the state of the world we live in, when people have to take on debt to buy phones. Of course, back in India this is the standard practice. I bought my first iPhone on a no cost emi.