EOS Group, one of Europe's leading debt management companies, investigated hundreds of thousands of uncovered cases in Hungary in 2018. According to the results, more than half (51%) of debtors belong to the middle-aged population – 40-59 age group –, 29% belong to the 20-39 age group, and 20% belong to the age group over 60 years. Compared to 2017, the proportions changed slightly: the number of middle-aged debtors increased by 2 percentage points, the proportion of people over 60 increased by 1 percentage point, while the proportion of people aged 20-39 decreased significantly, by about 3 percentage points. This may indicate that the younger generations are managing their finances with increasing awareness and they are trying to repay their debts as soon as possible.
In terms of average payments per capita, the largest repayment amount is for bank debts, where an average payment is HUF 27,300, while in case of telecommunication debts this amount is HUF 17,500 and in case of utility debts it is HUF 15,700. The value of average payments increased by 11% compared to last year.
The research also covers the legal costs saved by early contact and installment payment arrangements. “It is important for all parties to pay the debt as soon as possible, as the related potential legal costs can be charged by the debtor. That is why we aim to reach such an agreement at an early stage which is acceptable to all parties. The average expected legal cost per case for legal debts was approximately HUF 58,078 in 2018” – said Tamás Kraszna, head of uncovered debt management at EOS Hungary.
The EOS Group
The EOS Group is one of the leading international providers of customized financial services. Its main focus is on receivables management, and with its 51 subsidiaries, more than 7,000 employees and 20,000 customers, it is one of the largest players in the market. Working in an international network of partner companies, the EOS Group has resources in more than 180 countries, and directly operates subsidiaries in 21 countries. The company's key target sectors are banking, insurance, utilities, telecommunications and IT companies.