Clear message: – Had surprised many

The vast majority of us are familiar with the “Luxusfallen” – the program that deals with overconsumption, where well-known economists help people with excessive consumption in relation to their income.

Last year, the TV success celebrated its 15th anniversary, and they are now recording season 27.

DinSide has met consumer economist and TV profile Hallgeir Kvadsheim (53), who starts by taking us through the biggest economic challenges 15 years ago.

– Quite a lot has happened in recent years, he says.

Exception before – main problem now

Kvadsheim says that people had fewer problems, and made contact more quickly at the beginning of “The Luxury Trap”.

– The biggest challenges before were unopened envelopes with various bills and claims, such as electricity, mobile and the like – individual bills.

Now the cases in the “Luxusfallen” are more complicated, explains the consumer economist. This is both because the amounts are larger and people wait longer before making contact.

– Now it is more about larger loans, such as consumer loans. Today, most people do not struggle with the fact that they have too high consumption, but that they have too high costs, says Kvadsheim.

According to the “Luxusfellen” presenter, what has changed the most is consumer loans and unsecured debt.

– There were many who had it when we started with “Luxusfellen”, but that was the problem – was the exception. Now that’s the main problem.

– Brutal

– A huge problem

The 53-year-old talks about a major shift in young people’s finances, which he believes is mainly due to two things.

– Social media has made it much easier to see what people around you spend money on, and you also want to do the same.

He lists holiday trips, yoga classes and wine tasting evenings as examples.

– This was more hidden before because you had to know people to know where they had been on holiday, for example.

The second thing the “Luxury Trap” profile points out is that money has become less concrete.

– You no longer need cash, which also means that you lose understanding of how much things are worth. It’s a huge problem, because we lose the overview.

It only gets worse

The consumer economist singles out one challenge in particular which he believes is recurring, and getting worse and worse:

– More of what we buy is defined as necessities – “must have” rather than “nice to have”, and that is challenging.

Kvadsheim says that going to Sats 15 years ago was both unnecessary and a bit of a luxury.

– Now it is common and many see it as a necessity, on the same level as buying bread.

The same applies to streaming services, of which many now have several, he says.

– You set yourself quite high standards, and then it becomes more difficult to adjust.

Clear message

– Think we’ll fix everything

When asked what makes him most upset in “The Luxury Trap”, the presenter replies:

– It’s a long to-do list, says Kvadsheim with a laugh.

– An example is when we have worked with participants for a long time and they do not understand why they have to sell things. Or if they think that we will come in and fix everything for them, and that they should not make any effort themselves.

The consumer economist says that many of the participants who take part in the Luxury Trap have received help from family, friends and banks along the way.

– Nevertheless, they believe that we should only fix their debt. We will only help them on their way, but they will be involved in selling and negotiating.

The regular in the “Luxusfellen”

According to the presenter, a regular feature of TV success is those who believe that a new loan will erase all their problems.

– They have probably seen an advertisement that says you can pay all small loans with one loan. People think that taking out a new loan fixes everything, but it doesn’t.

– The problem is not necessarily all the small loans, but overspending, emphasizes Kvadsheim.

The overspending is often about the petty pickpockets who eventually become big.

– Examples of that are Red Bull, Pepsi Max and snuff – that’s money you can spend on other things. It’s very rare that we come across someone who doesn’t spend money on something like that.

– Addiction is a regular occurrence in the Luxury Trap, says the presenter.

The biggest traps

The biggest trap in personal finance is, according to the consumer economist, underestimating consumption and overestimating income.

When it comes to younger people, the biggest trap is not having built up a buffer account to draw from in case something unexpected happens.

– There are many people who say that they cannot cope with something unforeseen because they do not have enough savings to withdraw, says Kvadsheim.

The “Luxusfallen” profile gives us some tips on what to avoid.

– It is not necessarily the case that you have to avoid a credit card, but you should put it away if you notice that you are floating on it and do not get paid every month.

He emphasizes that this applies to those who notice that they are unable to handle credit cards.

– Shit

Kvadsheim points out once again that it is also important to remember that the image you get of consumption in social media is not correct.

– Even if it looks like someone is having a very nice holiday, they may be prioritizing restaurant visits, among other things.

And remember: it is always possible to live austerely for a short period to pay off debts, the TV profile points out.

– You can be extremely frugal for three months, for example, by stopping shopping and using up what’s in the freezer. I think many people would be surprised by how tight one can live.

– It’s crazy, but you can manage it, assures Kvadsheim.