A survey by Intrum shows that 74% of Portuguese are cutting back on spending, while 30% expect to use their savings to pay daily bills given inflation and rising interest rates, according to a report by Intrum.
“While 74% want to cut back on daily expenses and 30% plan to use their savings to pay daily expenses and bills, these are only temporary solutions. Ultimately, when their money runs out, consumers will stop paying some bills. “however, revealed Intrum’s European Consumer Payment Report 2023 — Portugal, which Lusa had access to.
About 16% of people said they now have less money to spend, after paying for bills and essential goods, than in the previous year.
The research shows that 22% of consumers did not pay at least one invoice on time last year.
There was an increasing number of non-compliances among Generation X and Millennials.
About three in 10 people say they would feel less guilty about skipping a bill payment now than they did a few years ago.
More than 40% hope that companies will not bother to take measures against consumers with payment arrears.
“With consumers’ real incomes stagnating or declining, a large share of consumers will have to make tough choices about how to handle the next six months: 63% may cut holiday spending and 72% say they may cut back spending at Christmas”the document reads.
In the past six months, one in four respondents have borrowed money to pay bills and 12% may need additional credit to pay their daily expenses.
Less than 40% of Portuguese have savings equal to a monthly income or less, while one in five has no “cushion”.
The report also shows that 19% of people are unable to save to cover unexpected expenses, compared to 18% in 2022 and 16% in the previous year.
More than half (54%) of consumers believe their financial situation will improve over the next twelve months and the majority expect inflation to continue in the coming years.
To conduct this study, 20,000 people were surveyed in 20 countries (approximately 1,000 in each), with the target group being 18 years or older.
Fieldwork for the study took place between July 19 and September 1 of this year.
Source: DN
