Generation Z demonstrates extremely risky financial behavior that threatens their economic stability. According to a leading expert in financial services, young people show an alarming tendency towards reckless lending, which poses serious economic risks.
Lilia Dimitrova, chair of the Debt Management Association, reveals extremely concerning data about credit discipline among the younger generation. Her professional analysis shows that contemporary young people take on multiple parallel financial obligations without the necessary caution and understanding of long-term consequences.
A key problem is the practice of simultaneously using dozens of credit products from different financial institutions. The expert emphasizes that some borrowers have double-digit numbers of active loans, which creates an extremely high risk in case of potential income loss.
Statistical data show an identical percentage of non-performing loans in both traditional banking institutions and microcredit companies. The majority of financial products are unsecured consumer loans, while mortgage loans demonstrate a higher degree of responsibility and regular servicing.
Dimitrova presents a golden financial rule for responsible lending: monthly installments should not exceed one-third of net income. With an average net salary of 1500 leva, the recommended amount of monthly credit payments should be around 500 leva.
The economic environment in 2024 shows positive trends with a significant registered increase in debt collection. Simultaneously, substantial legislative changes are observed related to the ten-year absolute statute of limitations on financial obligations.
The upcoming transition to euro payments is not expected to cause significant changes in the financial system. According to the expert, the value of obligations will remain unchanged, with the only difference being the currency of reporting.
The main message of the analysis is the need to increase financial literacy among the younger generation. A key focus is understanding responsible management of personal finances and preventing excessive indebtedness.
The expert assessment serves as a strong signal to financial institutions and educational systems for urgent intervention and prevention of risky credit behavior among young people.