Norway Debt Crisis: Record Highs & Expert Warnings

Figures from The debt register shows that Norwegians’ consumer debt has never been higher than it was at the end of October this year. From October 2024 to October 2025, the total consumer debt rose by NOK 4.7 billion and is now NOK 175.7 billion.

NOK 139.4 billion of this is interest-bearing consumer debtwhich mainly consists of overdue credit card debt and consumer loans.

Expect further growth

The figures mean that the Debt Register does not look forward to the current shopping season.

– This year, as last year, consumer debt has increased significantly through the autumn. In October, it is the interest-bearing part, which mainly consists of overdue credit card debt and consumer loans, that increases the most. This results in an additional burden on household budgets, and increases the risk of debt problems, said general manager Egil Årrestad of Gjeldsregisteret AS in connection with the presentation of the statistics earlier in November.

– With the “black month” of November, and dawning Christmas shopping, we can expect further growth in consumer debt for the rest of the year, he added.

Paying two or three times extra

“Luxusfallen” presenter and co-founder of the Debt Collection Register, Lene Drange, has extensive experience in helping Norwegian consumers manage and get an overview of their debt. She tells DinSide that many people end up paying back two or three times what they originally borrowed.

– If you end up on the road, the bill can quickly become expensive. You buy something for NOK 25,000, but it adds up and you end up paying NOK 75,000, says Drange.

But it will not only be expensive, it will also take a very long time to pay off the credit card debt if you only pay the minimum sum of three percent each month.

– If finances are tight, it is tempting to pull out the credit card or use buy-now-pay-later solutions to pay for gifts and food. It can quickly become more expensive than you think, if you don’t pay quickly. In the worst case, you risk paying on the credit for many years, says Guro Sollien Eriksrud, head of consumer economics, to DinSide.

The Consumer Council is wary of encouraging people to buy on credit or to choose “buy now pay later”.

– The problems arise when you don’t pay the credit bills on time, and the interest starts to accrue, says Eriksrud.

Increasing among younger people

And especially among younger people, debt is increasing, says Drange.

– We see great growth in the 18-29 age group in debt collection cases, and it is becoming more and more common for young people to use “pay later” when shopping. There are also young people who pay with credit when they order food at the door.

Drange says it is good that the banks have tightened up on how much young people can have in consumer debt, but at the same time warns that it will not take many thousands of pounds before credit becomes very expensive.

Message to over 900,000 Norwegians

– What is extremely scary for many is that they have little knowledge of finances and then it can become difficult. When you finish high school and have become a big customer of the credit card company, there is a low probability of getting out of debt.

If you are unable to pay off the debt, Eriksrud recommends using the Finanportalen from the Consumer Council to investigate whether you can get lower interest rates elsewhere.

– Many people who have debt on credit cards and shopping accounts can save a lot by refinancing for a consumer loan or in the mortgage, explains Eriksrud and at the same time warns that refinancing must not become a sleeping pillow.

– Make a good plan to repay as quickly as possible and avoid credit debt in the future, and ask for help if you need it. Those who offer credit naturally benefit from us not realizing how expensive it really is.

Bull to the credit card

– Why do many choose credit cards over other solutions when the economy is tight, Drange?

– It is difficult to say no. In addition, there is a lot of targeted and aggressive marketing of products that you perceive you need or that others have. We consumers are also happy to spend money, at the same time we are almost led to choose pay later when shopping.

She gets support from Eriksrud, who says that we are in a time where you are exposed to massive marketing and manipulative techniques to get you to buy as much as possible, and preferably on credit.

– Reflect on how this affects you, and what you can do to avoid buying more than you can or should.

Check it now

– Gets legs to walk on

All the shop offers and half tax on the salary means that the money is perhaps more loose than usual.

– The half-tax money quickly gets a foothold. Some people become very impulsive and think a little too late that “oh, shit, now I can’t pay the credit card bill.” What now?” says Drange.

She says that the Debt Collection Register’s experience is that very many people will pay back the debt, but that it becomes demanding when there are many demands at the same time and you become paralyzed.

– What steps can you take yourself to reduce debt?

– We need to raise awareness about this. And people need to know that credit is not the best. Pay the “old way” with money you have in your account. In addition, everyone has a responsibility to learn what credit entails.

– The young people in particular may not be so good with finances, and then it is important to have that conversation with them.