The number of young people up to the age of 25 who are heavily in debt is on the rise in Bulgaria, with the fastest-growing demographic being young individuals, even those with stable incomes. Financial mismanagement is primarily to blame, particularly among men, who tend to incur more debt than women. This alarming trend is highlighted in data and observations from the EOS Group, a company specializing in the purchase and management of receivables.

EOS Group has launched a global initiative aimed at improving financial literacy among children aged 9 to 13. This week, a popular book from the United States that teaches young people how to manage money will be released in Bulgaria, aiming to support both kids and their parents in developing essential financial skills.

The profile of a typical debtor in Bulgaria is a man aged between 30 and 40 living in Sofia, who has taken on one or more consumer loans without adequately assessing his financial options. According to the company's findings, 15% of debtors reside in Sofia, with men making up a larger portion of defaulters at 58.2% compared to 41.8% for women.

One of the most concerning statistics is the increase in indebtedness among young people under 25. Their share of total debtors has surged from 7.21% in 2021 to 21.3% in 2024. In contrast, the proportion of debtors in older age groups has declined. For instance, the share of those aged 30 to 40 dropped from 27.26% in 2021 to 24.16% in 2024. Similarly, the number of debtors aged 40 to 50 has fallen to 17.79% from 24.05% three years ago, while those aged 50 to 60 decreased by nearly three percentage points, now standing at 12.44% compared to 15.33% in 2021.

Young people primarily go into debt for purchasing mobile phones, equipment, and sports goods, each accounting for roughly 22% of their debts. Reni Mitkova, a manager at the debt collection company, explained that the issue lies not in a lack of funds but in individuals' inability to manage their finances, which is indicative of low financial literacy.

Mitkova noted that the typical debtor, while often employed in stable professions with reliable incomes, fails to grasp the fundamentals of budgeting. She provided an example of a 25-year-old IT specialist who quickly accumulated over 500 leva in monthly liabilities by purchasing an iPhone, a laptop, an electric scooter, and a large TV on credit.

Experts argue that personal finance is not adequately addressed in Bulgarian education, from primary through to university levels, leaving young individuals ill-equipped to handle their financial responsibilities.