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High additional payments for energy: Associations warn of rent debts

2022-05-23T05:22:41.530Z

The tenants are currently anxiously awaiting the utility bills. Because of the increased energy prices, drastic additional costs are to be expected. Experts warn that many households are likely to be overwhelmed.



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Residential building in Berlin: worry about a wave of over-indebtedness

Photo: Florian Gaertner / photothek / IMAGO

Several associations have warned against rent arrears due to high back payments due to the exploding energy costs.

"Especially for households with low incomes, this will have a major financial impact," said the managing director of the federal debt counseling group, Ines Moers, to the newspapers of the Funke media group.

Poorer households often “used up what little they had saved” during the pandemic.

“You no longer have any reserves in case lavish additional payments come soon,” she said and warned: “It will be extremely hard for these households.” In addition to the additional payment for the annual statement, a higher monthly deduction for the subsequent period will be added later.

"This will be a significant financial burden for many people," said Moers.

She emphasized that the demand for help from debt counseling services has increased significantly recently.

The Haus&Grund owners’ association also warned of rent arrears due to rising energy costs.

»There is no end in sight to the sharp rise in energy costs.

Additional payments are unavoidable if tenants and landlords do not agree on an adjustment to the advance payments," said the association director of Haus & Grund Rheinland Westfalen, Erik Uwe Amaya, of the "Rheinische Post".

»Otherwise it is to be feared that there will be rent arrears.

This can result in layoffs,” he warned.

Amaya promised the landlords goodwill: “During the corona crisis, private landlords have shown that they offer rent reductions or deferrals to tenants in special situations.”

The German Tenants' Association (DMB), meanwhile, called for help from the federal government.

"More relief is needed, especially for households with below-average incomes, which at the same time often live in poorly insulated apartments," says André Juffern, head of the DMB for North Rhine-Westphalia.

»The energy package only cushions the costs incurred once and partially.

The heating cost subsidy must be at least doubled,« he demanded of the »Rheinische Post«.

In addition, it must be ensured that the real costs are taken into account for Hartz IV recipients as part of the assumption of accommodation costs.

The debt expert Patrik-Ludwig Hantzsch from the credit agency Creditreform expected an increase in private bankruptcies because of the high prices.

"In the coming months we will have immense problems with rising inflation, which will significantly exacerbate the over-indebtedness situation and will ensure more private bankruptcies," Hantzsch told the Funke newspapers.

»The increase in the price of many products will claim victims.«

Low wages, precarious workers and families with children would come under particular cost pressure.

"It will break the neck of some," said the economist.

Solo self-employed would also have significant problems.

According to Hantzsch, more than three million households in Germany are currently over-indebted.

mike/AFP

Source: spiegel

All business articles on 2022-05-23

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