The number of young people under the age of 25 falling into heavy debt in Bulgaria is climbing at an alarming rate, with the fastest-growing demographic being young individuals, even those with steady incomes.
EOS Group’s findings reveal that 21.3% of debtors in 2024 are under 25, a sharp increase from 7.21% in 2021. This growth contrasts with a decline in indebtedness among older age groups.
For example, debtors aged 30 to 40 saw their share decrease from 27.26% in 2021 to 24.16% in 2024.
Similarly, the number of debtors aged 40 to 50 has fallen to 17.79%, down from 24.05% three years ago, while the share of those aged 50 to 60 has decreased from 15.33% to 12.44%.
Reni Mitkova, a manager at the debt collection company, explained that the rise in youth debt stems not from a lack of income but from poor financial decision-making.
“Many young people earn stable salaries, but their inability to manage money is leading them to take on more debt than they can handle.
This is particularly prevalent among men, who make up 58.2% of debtors compared to 41.8% for women,” she said.
Mitkova provided the example of a 25-year-old IT specialist who accumulated over 500 leva in monthly liabilities after purchasing an iPhone, laptop, electric scooter, and large TV on credit.
This case highlights a common pattern: young people are incurring debts to finance non-essential purchases such as mobile phones, equipment, and sports goods, each accounting for approximately 22% of their overall debt.
The EOS Group’s data also shows that 15% of debtors are concentrated in Sofia, with men aged 30 to 40 making up a significant portion.
This typical debtor profile—men taking on one or more consumer loans without adequately assessing their financial capacity—reflects a broader problem with financial literacy in Bulgaria.
To address the issue, EOS Group has launched a global initiative to improve financial literacy among children aged 9 to 13.
This week, a popular American book that teaches children how to manage money will be released in Bulgaria, aiming to help both kids and their parents develop essential financial skills.
Despite these efforts, experts argue that Bulgaria’s education system fails to adequately prepare young people for managing personal finances.
Financial literacy is seldom addressed in schools, leaving individuals ill-equipped to handle their financial responsibilities later in life.
Mitkova emphasized that personal finance should be a core part of the curriculum, from primary education through university.
“Young people enter the workforce and make significant purchases without fully understanding the long-term consequences of their financial decisions. It’s not just about earning money; it’s about managing it wisely,” she said.
With youth debt on the rise, it’s clear that addressing financial literacy is more urgent than ever. By equipping young people with the knowledge to manage their finances, Bulgaria can hope to reverse this worrying trend and promote a more financially responsible generation.