Based on data from the BIG InfoMonitor Debtors Register and the BIK credit information database, we learned that Polish counties and cities differ in terms of the financial situation of their residents. In 23 out of 380 counties, at least 1 in 10 people have unpaid liabilities on time. “The highest percentage of unreliable debtors was recorded in Silesian cities with county rights: Wałbrzych – 15.2%, Chorzów – 12.9%, Bytom 12.5% and Świętochłowice – 12.3% and in the Wałbrzych county – 12.1%” – it was reported in announcement.
The largest number of unreliable debtors is in Silesia. Their situation has improved, however.
In first place among the counties with the highest percentage of residents with overdue debts was Wałbrzych, where an average indebted resident has to repay PLN 26 thousand, and their total overdue debt amounts to PLN 414 million. The situation is similar in Upper Silesia, where indebted residents of Chorzów have to repay an average of PLN 26.8 thousand, residents of Bytom PLN 27.3 thousand, and residents of Świętochłowice PLN 26.1 thousand.
According to the president of BIG InfoMonitor, the situation of debtors has improved significantly anyway. “Without a doubt, the economic situation in the whole country, also in counties with the highest percentage of owners of overdue liabilities, has definitely improved over the last 20 years. (…) In 2004, the unemployment rate in the country was on average 18 percent, but in the Wałbrzych county it was already over 28 percent, in Świętochłowice 27 percent, Bytom 25 percent, and in Chorzów 22.7 percent. Now the unemployment rate for the whole country is 4.9 percent, and in most of the counties mentioned it is lower. Only in Bytom does it still exceed 8 percent. The improvement in the professional situation of residents directly affects their ability to repay their debts on time, but not in every case” – commented Sławomir Grzelczak, quoted in the press release.
The highest debt in Warsaw, Łódź and Kraków. Wealthier regions may have higher debts
The data also revealed that the largest nominal value of overdue liabilities belongs to residents of Warsaw – it is PLN 7.89 billion. Second place went to residents of Łódź with PLN 2.2 billion of overdue debts, and third place went to residents of Krakow with PLN 1.9 billion of arrears.
“In wealthier regions, there are often more debtors for several reasons. First, higher living costs: in wealthier regions, the cost of living, such as housing, services, and products, is usually higher. (…) Second, easier access to credit: people with higher incomes tend to have better access to credits and loans. (…) Third, consumerism: in wealthier regions, there may be greater social pressure to own luxury goods and maintain a certain lifestyle. (…) Finally, investments and risk: people with higher incomes are more likely to invest in various ventures that may involve financial risk. Unsuccessful investments can lead to debt,” Grzelczak continued.
The smallest arrears were recorded in Podkarpacie and Małopolska
The BIG InfoMonitor Debtor Register and the BIK database also showed that only in 31 counties the outstanding liabilities per 1 thousand inhabitants do not exceed one million zlotys. “The smallest, because 'only' PLN 535 thousand per 1000 inhabitants was recorded in the Kolbuszowa county. A little more, because PLN 638 thousand per 1000 inhabitants in the Ropczyce-Sędziszów county. The next in this ranking is the Limanowa county with an outstanding debt of PLN 682 thousand per 1000 inhabitants” – it was stated in the announcement. As it turned out, out of 20 counties with the smallest percentage of inhabitants with debts, as many as 12 are located in the Podkarpackie province and 7 in the Małopolskie province. In 20th place was the Kielce county in the Świętokrzyskie province.