Abridged English version of the SCHUFA Credit Compass 2008

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18.9 percent of all
18 to 24 year olds who
wereconfronted with
a situation of critical
indebtedness or overindebtedness
in 2002
(red level) were able to
reach the green level.
Debt Compass | A | Basic Analysis A-1 | 3
Change in the risk levels for young adults (ages 18-24)* from 2002 to 2007
Percent
green
yellow
orange
red
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Chart 3.2.2
green yellow orange red
* Most of these individuals are no longer in the 18-24 age group in 2007
The study of young adults (18 to 24 years old, chart 3.2.2) shows that critical financial situations
are not necessarily self-reinforcing, even among the younger age groups. Between 2002 and
2007 almost half of 18 to 24 year olds were able to move out of the critical red level.
An overwhelming majority of young adults (88.6 %) who had no negative indicators registered
with SCHUFA in 2002 and thus were in the green risk level, also have no information of noncontractual
behaviour five years later. At the same time, more than half of the young adults who
were in the red level in 2002 have not left this critical situation by 2007. Furthermore it can be
seen that young adults previously in the orange level have more quickly arrived in the critical red
risk level than the older age groups. Nevertheless, the percentage of young adults in the orange
group is negligible, with around one percent in 2007 (cf. table 3.1.2). Altogether, both studies
show that the majority of individuals who were in the green level at the beginning of the study
period were still presenting no information about payment defaults five years later. In the same
period around a fourth of people who found themselves in a critical situation of indebtedness or
over-indebtedness in 2002 saw their financial position stabilize and were able to reach the green
level.
Since development is fairly dynamic, critical financial situations do not always intensify and there
are ways out of even a critical financial situation; nevertheless, the evaluations show a rather
strong mobility toward the red level. There is a higher probability of moving into the red group
from the yellow or orange levels than there is from the green level.
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