The number of Danes listed as bad payers with debt in Denmark has dropped to the lowest level ever recorded, as tighter lending regulations and stronger personal finances reshape borrowing behavior in Denmark.
Bad Debt Registrations Hit Historic Low
Denmark is seeing a significant positive trend in its consumer credit landscape. According to new data from the financial analytics firm Experian, the number of Danes registered in the country’s RKI debt register—used to list individuals and businesses that fail to pay their bills—has reached a record low. As of July, just under 166,000 individuals were registered in RKI, a drop of more than 2,500 since January. This marks the lowest recorded figure since the register was established. A lot of Danish people are becoming more careful with their money.
Compared to data from January 2014, when over 230,000 people were listed, this decline reflects a broader, long-term trend of financial restraint and improved repayment habits among Danish consumers. It’s a positive sign for debt in Denmark and financial stability across the country.
Multiple Factors Behind the Decline
Several converging factors are contributing to this decrease. Denmark’s employment rate remains high, which has helped stabilize household incomes. Additionally, inflation in the country has largely normalized following spikes in recent years. Together, these developments have given consumers more confidence and capacity to manage having debt in Denmark.
There is also a cultural shift at play. Many Danes still remember the financial turmoil during the global economic crisis of the late 2000s. That experience appears to have left a lasting impact on attitudes toward debt, encouraging a more cautious approach to personal spending and borrowing.
Stricter Lending Rules Reinforce Trend
Changes in lending legislation have also helped prevent new cases of indebtedness. In the years following the financial crisis, Denmark implemented more stringent borrowing standards to discourage reckless lending and borrowing, particularly among younger and lower-income consumers.
These regulations have made it harder to obtain credit, even for modest amounts. While this might seem like a barrier to financial inclusion, experts say it also acts as a protective measure that shields consumers from becoming trapped in cycles of unmanageable debt in Denmark.
As a result, people who might previously have taken out small high-interest loans and later defaulted are now less likely to enter the RKI system at all.
Average Debt Remains Substantial
Still, for those already listed in the RKI register, the financial challenges remain significant. On average, each registered person is associated with approximately 2.7 unpaid cases. The average amount owed stands at nearly 48,300 Danish kroner, or about $7,000, depending on exchange rates. The average individual case value is around 17,900 kroner.
These figures highlight that while the number of people falling into default is decreasing, those who do still face serious financial burdens. The registry also plays a powerful role in shaping credit access, as being listed in RKI with debt in Denmark effectively blocks individuals from obtaining new loans or setting up payment plans with most Danish companies.
Experts Expect Stable Future
Though the downward trend in bad debt registrations is expected to continue, experts believe the pace of decline is likely to slow. The current number of roughly 166,000 individuals may represent a new baseline, reflecting those who are dealing with chronic financial difficulties, mental health issues, or other challenges that affect their ability to manage money.
However, the long-term decrease in registration for debt in Denmark, is being welcomed by Danish financial institutions, businesses, and consumer rights advocates alike. It signals a stronger economic foundation for many individuals, greater financial resilience, and an overall healthier credit environment.
About the RKI Register
The RKI, short for Ribers Kredit Information, is Denmark’s largest register of bad debtors. Managed by Experian, it is used extensively by banks, telecommunications companies, landlords, and other businesses to assess creditworthiness and decide whom to extend loans or services to.
Being listed in RKI can significantly limit an individual’s financial options. Removing oneself from the list generally requires full repayment of the debt in Denmark, and names can remain listed for up to five years unless resolved earlier. The register helps businesses avoid unnecessary risk, while also encouraging consumers to settle outstanding liabilities.
As Denmark continues to emerge from the economic shocks of recent years, the combination of structural reforms, cultural change, and regulatory vigilance appears to be pushing the nation toward more sustainable financial behavior.
