Wegweiser Care leavers · Transition out of youth welfare Deutsch

💶 Avoiding debt and financial education without a family network

Without parents who would help out if needed: how to keep your first contract, phone plan and overdraft under control.

In brief

Your first tenancy agreement, phone plan or purchase on instalments is a new experience for all young adults – for care leavers, on top of that, often nobody can help out financially at short notice if something goes wrong. Debt counselling (Schuldnerberatung) is a mandatory municipal task and in principle accessible free of charge to everyone – regardless of age or background. If you are still in ongoing youth welfare, you should make handling money a specific topic in the support plan.

Step by step

  1. Compare costs before signing a contractBefore signing contracts (phone, streaming subscriptions, instalment purchases), realistically compare the costs with your own budget.
  2. Choose your bank account carefullyConsider an account on a credit basis or with a strict ban on overdrafts as long as your income is irregular.
  3. React immediately to payment difficultiesAt the first payment difficulties, contact the creditors immediately (ask for instalments/deferral) instead of ignoring reminders.
  4. Seek debt counselling earlyIf you have several outstanding claims, seek out a recognised debt counselling centre early – counselling is free of charge and independent.
  5. Use financial education offersUse care-leaver-specific financial education offers where available.

Deadlines

No statutory deadline
There is no deadline for using debt counselling – in practice, however, the earlier you do, the more room for manoeuvre experience shows you keep.—
Watch out – common mistakes
  • A contract once concluded (e.g. a mobile phone contract with a minimum term) generally cannot simply be undone – withdrawal periods are usually short (often 14 days) and must be observed exactly.
  • Do not confuse becoming independent with having to work everything out alone – Careleaver e. V. and debt counselling centres exist precisely for these questions.
  • Details on the protected bank account (Pfändungsschutzkonto), personal insolvency and procedures are deliberately not repeated here – see the in-depth topic pages in the Wegweiser on poverty and the Wegweiser for the unemployed.
In depth · legal basis, figures and practice – for advisers and professionals

Debt counselling as a mandatory task

Debt and insolvency counselling is provided as a municipal task and is accessible regardless of income or age, although the specific provider (social welfare office, independent providers such as Caritas, Diakonie, Verbraucherzentrale) is organised differently from municipality to municipality.

Why financial education is particularly important for care leavers

Studies and practice reports (including the German Youth Institute, Careleaver-Kompetenznetz) describe the lack of family support as a central risk factor for early debt after youth welfare ends – no nationwide, reliable statistic specifically on the debt rate of care leavers was found in the course of this research and it is therefore not quantified here.

Who is responsible
  • Municipal debt counselling centres
  • Verbraucherzentralen (consumer advice centres)

Quick questions

Worum geht es bei „Avoiding debt and financial education without a family network“?
Without parents who would help out if needed: how to keep your first contract, phone plan and overdraft under control.
Which deadlines and figures matter?
No statutory deadline: There is no deadline for using debt counselling – in practice, however, the earlier you do, the more room for manoeuvre experience shows you keep.
What should I do first?
  • Compare costs before signing a contract: Before signing contracts (phone, streaming subscriptions, instalment purchases), realistically compare the costs with your own budget.
  • Choose your bank account carefully: Consider an account on a credit basis or with a strict ban on overdrafts as long as your income is irregular.
  • React immediately to payment difficulties: At the first payment difficulties, contact the creditors immediately (ask for instalments/deferral) instead of ignoring reminders.
Evidence
  • see the lists of sources of the Wegweiser on poverty and the Wegweiser for the unemployed
As of

September 2026 · Sources and method

A question about your situation that this page does not answer? Write to us or use the contact form – we will tell you which office is responsible and what to bring. Free of charge, without individual legal advice.