Payments must go towards paying off the debt in the first place, not towards interest and fees. Now an investigation is proposing new rules that should make things easier for the over-indebted.
An investigation into over-indebtedness proposes several changes to the rules regarding indebtedness and debt restructuring.
– It’s about a very large number of people who can’t get out of their debts, says Cecilia Hegethorn Mogensen, Acting Crown Enforcement Officer and the Crown Enforcement Authority’s representative in the investigation.
The most important thing, she thinks, is the proposal on how payments on debts that have ended up with the Kronofogden should be handled. Debt settlement, it is called in the proposal.
Interest and fees
– If you have fallen behind, payments go first to interest and fees. Now we reverse the cut, so that the payments first go to reducing capital debt.
This should cause the capital debt to decrease so that the debtor gets a chance to get out of debt himself. As it is now, it will be next to impossible, she explains.
– We have calculated that if you have a debt of half a million, and pay half a million in interest and fees, you can still retain the entire capital debt.
She says that around 100,000 people, roughly a fifth of those who have ended up with the Kronofogden, have had cases with the authority for 20 years or more. The bailiff talks about eternal debtors.
– For us as an authority, it is not good either. We take people’s property and sell it, without reducing the debts. We also believe that this is better for payment morale.
She hopes, and believes, that the debt settlement proposal will go through. Although, of course, it faces resistance from the credit industry.
– If you don’t do something about the rules on debt settlement now, it will never happen. This should have been done a long time ago. These are very archaic rules that do not fit today’s view of consumers.
Shorter debt settlement time
The investigation also proposes changes to the rules on debt restructuring.
– Permanent debtors often feel bad and are unable to apply for debt relief. Now we will seek them out instead and help them. I believe that, because those who really need help can’t bring themselves to seek it.
It is also proposed to shorten the time during which the debt settlement takes place.
– Five years is a long time. Three years is more manageable, it becomes more of a fresh start. We believe that it provides a better rehabilitation effect, says Cecilia Hegethorn Mogensen.
TT has been in contact with the Bank Association, who will respond to the referral once it arrives.
Proposals to reduce over-indebtedness
The regulation has proposed a series of changes aimed at reducing over-indebtedness. Partly, a so-called settlement scheme for consumer claims that have fallen due, which aims to give more long-term debtors the opportunity to get out of debt.
According to the proposal, the new regime shall apply to both voluntary payment and garnishment. According to the proposal, payments and inflowing funds must only be deducted against late payment interest in the last resort.
The purpose of the proposal is for the debtor to be given better opportunities to reduce his capital debt through partial payments.
The investigation also proposes changed rules for debt restructuring.
The changes regarding the debt restructuring procedure are proposed to enter into force on 1 July 2028, and the changed settlement procedure for consumer claims on 1 January 2031.
Source: SOU 2026:43
Do you have jewelry lying around that you never use? Order a free Golden Letter!
