Abridged English version of the SCHUFA Credit Compass 2008

3. Risk Model
Debt Compass | A | Basic Analysis A-1 | 3
The SCHUFA risk model, first developed for the 2004 Debt Compass, classified levels of debt
into four different risk groups. An indicator model makes possible analyses about, for example,
the course over-indebtedness takes.
The risk groups are organized into green, yellow, orange and red levels. In the green risk level,
there are no indications of payment difficulty. Individuals with payment difficulties relating to
the mail order, e-commerce or telecommunications sectors count toward the yellow risk level.
In the orange risk level, on the other hand, are bank loan payment defaults. The red risk level is
for individuals who show signs of a critical financial situation which can be classified as absolute
over-indebtedness. Indications of this are, e.g., the delivery of an oath of disclosure or information
about consumer insolvency proceedings.
The indicators included in the risk model are presented on the following page.
Possible analyses of the risk model
In addition to the evaluation of all adult individuals, there is a separate evaluation of the 18 to 24
year old age group.
With the study of mobility between the different risk levels, it is possible to present whether there
is a way out of over-indebtedness or the threat of over-indebtedness. For this purpose, the period
from 2002 to 2007 will be examined (cf. chapter 3).
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