Farm debt households in Norway.
- Are you looking for professional accounting services?
- Phone: +0047 93982173 XNUMX
- Service in Polish
- Discounts for new customers
- Topnor www.topnor.no
The latest report on financial stability in Norway is not optimistic. According to analyzes carried out by Norge Bank, the greatest threat to the economy in Norway is the level of household debt. For this factor, the most dangerous warning color, red, has been assigned. In the event of a sudden change in interest rates, the level of household debt is by far the most dangerous in terms of its impact on a country's financial stability.
Why is household debt level so dangerous?
In a crisis situation, indebted households may significantly reduce consumption, and thus will not improve the country's economic situation in any way. This situation has already happened once. This happened in the year when Norway was hit by the financial crisis - in the early 90s. A significant reduction in consumption had a negative impact on the work of enterprises and companies and their ability to repay debts. Hence, debt companies and enterprises had a negative impact on the overall economic situation in Norway. That is why, according to the published report, it is so important to minimize the amount of household debt.
What do we borrow money for?
this is not the only warning sign
We wrote about the indebtedness of the inhabitants of Norway in the text: Norwegians on vacation - about holidays on credit! However, the high level of household debt is not the only warning signal as regards Norway's overall financial situation. The next ones are, among others very high house and commercial real estate prices. However, they have not been marked in red, but are getting closer to this limit by marking these factors in orange. Factors that may have a negative impact on the economy of Norway that are marked in red or orange are automatically subjected to the advisory process in order to overcome them. Each such action is aimed at significantly improving Norway's economic situation and thus preventing it from being hit by the economic crisis.
. How much do we borrow?
Household debts in Norway. Why are we getting into debt?
The media, the big world impresses us ... We want to travel, see the world. Finally, we want to have our own dream house, and as you know, houses in Norway are not cheap. On the one hand, we kind of borrow less, on the other National Debt Register still a little scary. Norwegians borrow for power. They don't want to be worse than a colleague, buddy or neighbor. Unfortunately, the debt incurred must always be repaid.
