Abridged English version of the SCHUFA Credit Compass 2008

Debt Compass | A | Sub-Analysis A-2 | Introduction
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Introduction
The Private Debt Index (PDI), which was developed by SCHUFA, is an instrument that not only
analyses the historical development of critical indicators for private debt, but also forecasts the
future development in the medium range.
The forecasts of the PDI are unique in over-indebtedness research, because a single index figure
from a wealth of individual indicators shows the private debt and over-indebtedness situation in
all Germany, the 16 federal states and the currently 429 counties.
The PDI shows the extent to which the risk of over-indebtedness has decreased or increased, and
how strong the critical indicators for private debt are represented in the individual geographical
regions. To show the considerably varying regional development of private debt, the PDI figures
for the five largest German cities are presented on zip code level in addition to the analyses on
national and county level.
The full year forecast has made the PDI the most important barometer for critical indicators
of private debt in Germany. This increases transparency with respect to the over-indebtedness
situation or over-indebtedness risk of private individuals in Germany. In view of tight money
markets at present, the PDI can serve as an early warning signal that is important for the German
economy.
www.privatverschuldungsindex.de
The current analyses are based on actual data from SCHUFA’s total data portfolio (reporting date
30 June 2008), as well as on the change as compared to the preceding year 2007 (reporting date
31 December 2007) and the predicted changes for 2009 (reporting date 31 December 2009).
The following chapters present the results of the PDI. Further analyses with the PDI in combination
with further trends of debt and over-indebtedness with an interactive map of Germany are
available in the internet at: www.privatverschuldungsindex.de