Financial Assistance for Non-Citizens in Debt Trouble, Switzerland
Living in Switzerland might lead one to believe that its residents are financially sound, yet many face a growing debt problem.
In 2024, the number of debt-related proceedings surged for the fourth consecutive year, reaching an alarming 17,036 cases, as reported by the Federal Statistical Office (FSO).
Approximately 40 percent of Swiss residents reside in debt-laden households, with around 5 percent harboring more than three types of debt, according to Swiss government statistics. Roughly 6.9 percent of the Swiss population manages a household with an active debt collection procedure in place.
Overdue payments remain common, with one in eight citizens lagging on at least one obligation. Keep in mind that these data points stem from a 2022 analysis.
The government acknowledges the profound physical and emotional toll that being overwhelmed by debt takes on individuals. "Individuals who struggle to repay their debts are highly unlikely to regain financial freedom without assistance," the Federal Council stated. Unpaid debt strains the affected and negatively impacts their overall health.
In January 2025, the government presented two potential solutions to help alleviate household debt: debt restructuring agreements and bankruptcy restructuring.
The former option enables indebted individuals with a steady income to negotiate partial debt forgiveness from creditors if the majority agree and a judge deems it appropriate. The latter option targets individuals who cannot reach an agreement with their creditors and must forfeit their assets to them over a specified period of several years while demonstrating a consistent income.
Upon successfully completing these commitments, an individual may be granted a release from the remaining debts. The collection phase has been reduced from four to three years.
The question remains: which demographics are most affected by debt and collection proceedings, and what types of debt are accumulating?
Data from the FSO reveals that 5.5 percent of debtors owe back taxes, while 4.4 percent have overdue health insurance bills. Another 4 percent are grappling with outstanding credit card balances, 3.4 percent dealing with unpaid utility bills, and 2.4 percent behind on rent or mortgage payments.
Joblessness is the primary risk factor for debt, with 19.5 percent of the unemployed indebted, based on FSO statistics. Within the general population, however, foreign nationals bear the most debt (6.6 percent versus 5 percent of Swiss citizens).
Free debt counseling services are now available for Swiss residents facing such predicaments, ranging from debt hotlines to location-specific resources. For instance, in the Swiss-German region, one can reach out to a toll-free hotline (0800 708 708) Monday to Thursday from 10am to 1pm. Links to free services in each canton of residence can be found at the bottom of this article. French-speaking Swiss can call 0840 43 21 00 (toll-free from a landline) on Mondays and Wednesdays from 8:30am to 5pm, as well as Tuesdays and Thursdays from 8:30am to 1:00pm. Services for Swiss-French cantons, as well as Ticino, can be found here.
- The Federal Statistical Office (FSO) reported that in 2024, the number of debt-related proceedings reached an alarming 17,036 cases, which marks the fourth consecutive year of surge.
- A significant portion of Swiss residents struggle with debt, with around 5 percent harboring more than three types of debt, according to Swiss government statistics.
- The government's two proposed solutions to help alleviate household debt include debt restructuring agreements and bankruptcy restructuring, which could potentially offer indebted individuals relief from a portion of their debts.
- Data from the FSO shows that foreign nationals in Switzerland bear the most debt (6.6 percent versus 5 percent of Swiss citizens), with joblessness being the primary risk factor for debt.
