More than 40% of young debtors in Uruguay are unrecoverable

More than 40% of young people debtors They are considered irrecoverable due to their difficulty in paying, according to a report on debt among people under 30 years of age published by the Central Bank of Uruguay (BCU).

The survey, which takes data from the Credit Risk Center (CRC) of the BCU, also shows that the majority of young debtors with difficulties have debts of Consumer credit with Credit Management Companies (EACs) and in a greater proportion than the rest of the older debtors, where the proportion reaches close to 33% of the total.

The debtors registered in the CRC total 297,329, of which 297,329 (15%) are under 30 years old. Among them, 166,000 (56.2%) maintain relationships healthy credits, while some 121,000 were marked as unrecoverable.

Amounts and credit rating

The document also shows that young people present debts, on average, of a lower amount than what occurred at other ages, while they have a smaller number of financial relationships. At the same time, they access credit to the living place and in greater proportion to credits for the acquisition of automobiles than the rest of the population.

Among the debtors with payment difficulties, there are 33,369 young people (11.2% of the total), they have a credit rating better in another financial institution, while another 48,000 (16.1%) have the worst credit rating in the financial system and maintain other defaults outside the CRC.

In addition to EACs, young people get into debt in a higher proportion with private banks, while there is also a greater amount that receives family’s asignations with respect to the rest of the population.

In which department is there a higher level of debtors?

When evaluating the geographical distribution of young debtors with difficulty in their payment capacity, Cologne is the best positioned, with 41.7%, while at the other end is Leap, with 64%.

Among the departments with the highest level there are Artigas (61.6%), Paysandu (59.1%), Rivera (57.6%), Long Hill (57%), Peach (54.6%), Flowers (54.4%) and Black river (53.8%).

Meanwhile, behind Colonia, the best positioned are Maldonado (48%), Lavalleja (48.4%), Florida (49%), Rocha (49.2%), Montevideo (fifty%), Saint Joseph (50.2%), Soriano (52.4%) and cannelloni (53.1%).