Debt Counseling in Saxony: Demand Remains High

The League of Independent Social Welfare Organizations is calling for more funding for debt counseling in Saxony. The League stated that funding must be needs-based and sufficient to cover costs. “Investments in counseling not only protect individuals from social decline but also strengthen social harmony and economic stability in Saxony.” The draft of the new two-year budget does not account for the requested increase in funding.

Long wait times and long distances for debt counseling

The League pointed to the high demand and backed this up with figures from 2024. At that time, more than 22,800 people received support at 68 debt counseling centers run by independent welfare organizations. “At the same time, there is a significant unmet need: Over 8 percent of Saxon households were over-indebted in 2023, yet only about 7 percent of the affected households were actually able to take advantage of the counseling services. Long wait times, long distances, and a lack of capacity make access considerably more difficult.”

Excessive debt is not just a financial problem

“Excessive debt is rarely a purely financial problem. It affects nearly all areas of life and often leads to social isolation, family crises, and health problems,” explained League Chairman Dietrich Bauer. Strong debt counseling stabilizes people, prevents follow-up costs, and creates new prospects.

Debt counseling enables those affected to make a fresh start

“Debt counseling enables people to make a fresh start. Without sufficient funding, there is a risk of longer wait times and gaps in service, especially for people in difficult life situations,” emphasized Johanna Rautenberg, head of the League’s Debt Counseling Subcommittee.

Current developments are further exacerbating the situation, the statement continued: “Illness, addiction, and accidents are now the most common causes of personal over-indebtedness in Germany—even ahead of unemployment. At the same time, the economic benefits of early counseling are clear: According to studies, every euro invested saves between 1.40 and 5.30 euros in subsequent social costs.”