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Demokratiskolan
The Debt & savings card from MethodKit for Society and Politics
Card 109 of 128 · MethodKit for Society & Politics
  • AreaEconomy & work
  • Centre of gravityCentral government
  • Points of influence2 on the journey
  • Decisive electionThe general election
Economy & work

Debt & savings

State's, Households' & companies' debts & stashes

Sweden's households are among Europe's most indebted, while savings in funds and pensions are enormous. The central government has its own balance sheet with national debt and budget rules. Who may borrow, what happens when debts are not paid and how savings are protected is regulated in detail, almost entirely at national level.

Where does the power lie?1

  • Municipality · budget & debt advice · approx 10 %
  • State · rules, collection & protection · approx 75 %
  • EU · banking & credit rules · approx 15 %

Almost all power over debt and savings is national: the Riksdag (Sweden's parliament), Finansinspektionen (the Swedish Financial Supervisory Authority) and the Enforcement Authority (Kronofogden). The municipality's advice, though, is statutory and free.

How it works: the breakdown

The municipalityThe advice
The regionOn the sidelines
Central governmentThe rules & the collection · centre of gravity
Who decides?
The municipality, often through consumer guidance or the social services administration.
No formal role.
The Riksdag, Finansinspektionen (the Swedish Financial Supervisory Authority), the Enforcement Authority (Kronofogden), Riksgälden (the Swedish National Debt Office) and Pensionsmyndigheten (the Swedish Pensions Agency).
What do they decide?
Budget and debt advice that all municipalities are required by law to offer, free for residents.
No formal role in households' or the central government's finances.
Amortisation requirements, consumer credit, seizure, debt restructuring, the management of the national debt and the pension system.
Where are decisions made?
On the municipality's website and at the citizens' service desk. Waiting times vary.
Not applicable.
In the Riksdag and at the agencies. The Enforcement Authority's decisions can be appealed to court.
Who pays?
The municipal tax.
No part of the bill.
The central government budget. The national debt is managed by Riksgälden on the taxpayers' behalf.
Fastest way in?
Municipal election Use the advice, ask the municipal politicians why the queue is long.
Regional election The regional election does not affect debt and savings.
General election Respond to referrals (remiss) on amortisation requirements and credit rules.
EUThe EU's rules govern banks' capital, consumer credit and the supervision of the financial markets. Influence it in the European Parliament election.

Read the table by column to understand one level, or by row to compare the levels. The green level is the area's centre of gravity.

How it works: follow the decision

The case An unpaid invoice reaches Kronofogden
  1. State

    The rules for credit already exist

    The Riksdag (Sweden's parliament) has decided how credit may be marketed, what debt collection companies may do and which fees may be charged. Finansinspektionen (the Swedish Financial Supervisory Authority) watches over the lenders.

    Point of influence

    The general election steers how easy it should be to borrow and what it may cost.

  2. Your everyday life

    The invoice is left lying

    A tough month and an invoice is forgotten. A reminder, a debt collection claim and fees pile on top of each other under charges that are regulated by law.

  3. State

    Kronofogden is brought in

    The lender applies for an order to pay (betalningsföreläggande). If you do not pay and do not object, the decision can go to seizure, and a payment default record (betalningsanmärkning) with the credit reference companies makes it hard to borrow again. The debtor can appeal the Enforcement Authority's seizure decision to the district court (tingsrätt).

  4. Municipality

    The adviser makes a plan

    The municipality's budget and debt adviser goes through your finances for free, helps you negotiate with the creditors and prepares a possible application for debt restructuring.

    Point of influence

    The advice is statutory and free. The municipal election steers how quickly you get an appointment.

  5. State

    Debt restructuring: a second chance

    Whoever is severely indebted can be granted debt restructuring (skuldsanering) at the Enforcement Authority: a payment plan over a few years, then the rest is written off. At the same time the same state manages its own debt through Riksgälden (the Swedish National Debt Office).

  6. Your everyday life

    The last instalment

    The plan is carried out and the finances hold again. The safety net that caught you was laws, an agency and a municipal adviser, all decided in democratic order.

The journey looks the same in reverse: what has been built came the same way, through the same decisions. Whoever knows where the decisions are made also knows where they can be changed.

Questions to discuss

  1. Whose responsibility is household debt: the one who borrows, the one who lends or the one who set the rules?

  2. How is money and debt talked about in your circles, and what does the silence do to the person with problems?

  3. Debt restructuring gives the severely indebted a second chance. Where do you think the line should go?

  4. The central government borrows billions in your name. How much national debt is reasonable, and who should pay it back?

  5. What would make more young people understand credit before the first quick loan?

Glossary

Statsskuld
The central government's total borrowing, managed by Riksgälden.
Betalningsföreläggande
The Enforcement Authority's quick way of establishing that a debt is to be paid.
Utmätning
When the Enforcement Authority takes wages or property to pay debts.
Skuldsanering
An option for the severely indebted to be rid of the rest of their debts after a payment plan.
Betalningsanmärkning
A note with credit reference companies about mismanaged payments, making loans and contracts harder.

Go further

Footnotes

1) This is an estimate of how decision-making power over the issue is split between the municipality, the region, central government and the EU, based on how responsibility is divided in legislation. A teaching guide, not an exact measurement.