The total debt obligations of Latvia's residents have been growing at an increasing rate with each passing year, Vitoliņa said, adding that the volume of loans issued by non-bank institutions in 2018 grew by 7.29 percent or EUR 43 million compared to 2017.
The total value of non-bank loans issued in 2018 was 630 million.
The steepest growth was recorded for payday loans (42%), consumer loans (20%) and leasing (30%).
Vitoliņa stated that people most often take loans to cover utilities or outstanding debts (38.89%), the purchase of food and household goods (27.59%), and the repair of transport vehicles (27.3%).
"Taking a loan to pay off a debt is the most unpleasant trend, as this is never the best financial solution," said Vitoliņa.
A PTAC survey revealed that 77% of people spend more money than they had initially planned on summer vacations, and 34% of respondents admitted of later struggling to cover the expenses, while 11% were forced to borrow money from a lender, relatives or friends to pay off their debts after the vacation.