The combination of soaring inflation, increased interest rates, and higher prices for travel, dining out, and entertainment has left many households struggling financially this summer. To cope with these increased costs, many have turned to credit or dipped into savings.

Davor Vuleta, a personal finance spokesperson at Kronofogden (Swedish Enforcement Agency), warns of the potential consequences of excessive borrowing. He emphasizes the importance of careful budgeting and planning to avoid financial difficulties.

– It's crucial to calculate whether you can repay any borrowed funds after the holiday season. Ignoring the issue can lead to a snowball effect, with small debts escalating into significant financial problems.

Data from Upplysningscentralen (UC) reveals a surge in credit card usage, with 52% of people using credit in July compared to 45% in the same period last year.

To avoid debt troubles, Vuleta recommends proactive steps such as contacting creditors early if payment difficulties arise. He also suggests seeking help from municipal debt counseling services. 

Swedish law guarantees access to free budget and debt counseling provided by your local municipality. This service offers support in managing your personal finances.

A budget and debt counselor can help you assess your financial situation, create a budget, and develop strategies for managing your debts effectively.

Details of Skellefteå's debt service can be found here.

Creating a detailed budget is essential to identify potential cost-cutting areas. While necessities like rent, electricity, and food should be prioritized, expenses such as streaming services, mobile subscriptions, and non-essential purchases can be reevaluated.

– We might need to adjust our lifestyle temporarily. Consider saving a small amount each month to prepare for next summer's expenses.

By taking these steps, individuals can better manage their finances and avoid financial stress.