Analysis of the development and the reasons of Czech households indebtedness from 1993 to 2012

The topic of the thesis is to analyze the debt of Czech households from 1993 to 2012. The main goal is to map the development of indebtedness of Czech households in these years and to discuss the reasons of increasing Czech households debt mainly including drop in inflation and interest rates, the desire of the population for their own living and the tendency towards the consumer life despite the decrease in growth of indebtedness of households till 2009. The thesis tries to answer the question whether Czech households are over indebted and whether they are threatened by falling into a debt trap. Although the increments of debt were considerable in the recent years, in the international comparison the indebtedness of Czech households is very low and the fall to a debt trap is not actual because the majority of loans are used for purchase of real estate. The risk is represented by substantial growth of interest rates, prices of real estate and increase in the unemployment rate together with low economic performance. In conclusion, the thesis tries to formulate the disposal against over indebtedness. As one of the most effective implement is considered the increase in financial literacy of wider population and the change of social atmosphere in which the debt was perceived least risky