Blocked bank accounts due to excess spending

UNPAID debts including mortgages, personal credit and credit cards have resulted in 85,000 blocked bank accounts in the Balearics.

According to the company ‘Resuelve tus Deudas’ (Solve Your Debts), 70 per cent of the blocked accounts belong to families with the remaining 30 per cent belonging to small and medium-sized businesses.

The legal director of Resuelve tus Deudas explained that although the Balearics is one of the richest regions in Spain, people are now paying for excesses during the years prior to and during the crisis.  To make matters worse, salaries are low which exacerbates the situation and places people at risk of bankruptcy.  

In terms of percentage, the actual number of people on the islands that are affected is around 7.7 per cent of the population of 1,100,000 inhabitants. Half of the blocked accounts are due to homeowners falling behind on their mortgage payments.  Sixty per cent of those affected are men and another 60 per cent are single. According to Resuelve tus Deudas, the situation is improving.