Debts of young Swedish women often caused by crime

39% of all debts of young Swedish men are crime-related

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In Sweden, youth indebtedness is increasing, and among men aged 18 to 25, criminal debt accounts for a significant proportion.

STOCKHOLM, SWEDEN, August 27, 2024 /EINPresswire.com/ — Youth debt in Sweden is a growing problem, and among young men aged 18-25, criminal debts such as damages or fines account for a significant portion of their debt. This article examines the various factors contributing to this worrying trend and how it differs from the debt situation of young women.

Crime-related debts dominate among young men
For young men aged 18 to 25, crime-related debts, such as compensation for crime victims, account for 39 percent of total debts. This is a marked difference from young women in the same age group, where the corresponding figure is only 8 percent. Crime-related debts can include fines, damages or other financial consequences of criminal acts.

The impact of gang crime on debt
An investigation by SVT Nyheter Stockholm shows that over 200 gang criminals in the Stockholm county owe the Swedish law enforcement agency a total of 56 million kronor. The ten most indebted members of these gangs are leaders and high-ranking members of the criminal networks, whose total debt amounts to 25 million kronor. This highlights an alarming connection between gang crime and indebtedness.

The investigation concerned 500 convicted gang criminals belonging to 40 criminal networks in Stockholm County. Of these, just over 200 gang members have debts to the enforcement agency. Although these individuals owe significant amounts, 70 percent have not reported income to the tax agency, with total income for 2021 amounting to just 6.6 million krone.

The most indebted person is a 36-year-old financial fraudster from the Gamla Östberga network who was sentenced to 7.5 years in prison for aggravated fraud in the major casino case in 2020. He is now in debt of over seven million kroner after defrauding individuals of 28 million kroner. This case illustrates the extreme economic consequences that gang crime can have and shows the need for effective measures to manage both debt collection and crime prevention.

A comparison with young women
While young men's debt is often linked to crime, the picture is different for young women. Average young women's debt has increased significantly over the past decade and is now approaching that of young men. A significant portion of this debt is consumption-related, indicating changes in consumption patterns as more young women purchase on credit.

According to statistics from the Swedish Enforcement Agency, young women's debts have increased by 106 percent over the past decade, while young men's debts have increased by 36 percent over the same period. This suggests a much faster increase in young women's debts.

Debt of young men often linked to criminal activities
In 2023, the Enforcement Agency collected 370 million krone in compensation cases for crime victims, a significant increase of 60 million from the previous year. This increase reflects a trend where indebtedness, especially among young men, is often linked to criminal activity. According to a new analysis by the Enforcement Agency, many debtors owe compensation to several crime victims, making the situation even more complicated.

The scope of compensation cases
Victims of crime who are entitled to compensation can turn to the Enforcement Authority for help in collecting the damages. In 2023, the Enforcement Authority received nearly 25,000 new compensation cases, an increase of 2,000 cases compared to the previous year. Despite two regulatory changes that have made collection more efficient, only a third of debts are fully paid within a year. At the end of 2023, there were over 130,000 active compensation cases, of which more than 60 percent had been ongoing for over five years.

Men’s debt problems
The enforcement agency's analysis shows clear differences between different groups in terms of compensation debt. The majority of those liable for compensation are men, and half of them are between 26 and 44 years old. The average debt of men is twice as high as that of women, indicating a deep-rooted problem among young men.

Damages debts are widespread among the youngest debtors, i.e. those aged 25 or under. In this group, 15 percent have damages debts, whereas the figure for those over 65 is only five percent. This highlights an important social problem: young men are overrepresented among those liable to pay damages.

Scope and complexity of debt
A large proportion of those liable for damages owe debts in multiple damages cases. One in three owes debts in three to ten cases, and four percent owe debts in more than ten cases. This suggests that a small group of people is responsible for a large number of damages cases, making the collection process even more complex and time-consuming.

Pernilla Tollin, an analyst at the Enforcement Agency, stresses that many of those liable for compensation have no known assets that the agency could seize. This means that victims of crime often do not receive the compensation they are entitled to. Total debts in compensation cases amounted to 10.2 billion krone at the end of 2023.

The importance of knowledge dissemination
It is important to spread the word that crime victims can seek help from the enforcement agency to receive compensation. Although this service is free, many find the process complicated and cumbersome. Anna Wadman, project manager at the enforcement agency, stresses that the agency works with other social actors to make it as easy as possible for crime victims to receive their compensation.

Sources:
– Kronofogden (Swedish Enforcement Agency), 18.06.2024, The debt development of young women is worrying. https://kronofogden.se/om-kronofogden/nyheter-och-press/pressmeddelanden/2024-06-18-unga-kvinnors-skuldutveckling-oroar

– Kronofogden (Swedish Enforcement Agency), 20.03.2024, 370 million collected in compensation cases for crime victims. https://kronofogden.se/om-kronofogden/nyheter-och-press/pressmeddelanden/2024-03-20-370-miljoner-drevs-in-i-skadestandsmal-till-brottsoffer

– SVT, 10.01.2024, 200 gang criminals in Stockholm County owe 56 million. https://www.svt.se/nyheter/lokalt/stockholm/svt-granskar-200-gangkriminella-i-stockholms-lan-skyldiga-56-miljoner

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