A recent survey by Takaisinperintä has highlighted a concerning link between payday loans and gambling in Finland. Among heavily indebted individuals, 28% reported taking out payday loans specifically to fund gambling or betting.
The survey included 765 respondents who had sought help from Takaisinperintä, a service assisting those overwhelmed by payday loan debt. In Finland, approximately 300,000 people are classified as over-indebted due to such loans, and nearly one in ten citizens face enforcement actions each year.
While some use payday loans to deal with everyday financial emergencies, gambling often worsens the situation. Around 32% of respondents identified gambling addiction as a significant factor in their financial distress. For many, the debt spiral is triggered by life events like health issues, divorce, unemployment, or addiction.
In Finland, the smallest available payday loan is €2,000. One-third of those surveyed had taken loans between €2,000 and €3,000. A troubling trend is the practice of taking out new loans to repay old ones. About 65% of participants admitted to borrowing again to pay off previous loans, deepening the debt cycle.
Moreover, 25% reported turning to friends or family to help cover payday loan obligations. Despite existing regulations, the findings suggest that high interest rates, vague terms, and poor credit assessments continue to leave vulnerable individuals exposed.