According to the latest DECO PROteste Barometer, three out of four Portuguese families had difficulty paying their bills in 2023. This alarming finding underlines the importance of personal finance management and the need for effective financial planning.
The financial crisis facing Portuguese families
In 2023, housing expenses were the main factor putting pressure on family budgets in Portugal. However, despite this pressure, the financial situation of the Portuguese people improved slightly.
According to the annual DECO PROtesteOf the 7,000 people surveyed, 75% said they would have difficulty paying their bills in 2023. Moreover, 7% of families were in a critical situation. The housing crisis was the main factor putting financial pressure on families that year, despite a slight fall in inflation.
Indeed, the average interest rate in 2023 was 3.612%, compared with 1.084% the previous year, according to the National Statistics Institute (INE). Not surprisingly, almost 28% of families had difficulty repaying their bank loans. Similarly, 23% of tenants had trouble paying their rent.
Expenses that have risen and those that have fallen
The costs of housing, education and leisure are those that have seen an increase compared to 2022, while other expenses have decreased. Despite a drop in inflation from 7.9% in 2022 to 4.3% in 2023, inflation continues to have a negative impact on a large number of Portuguese. Around a third (31%) of families say they are finding it "much more" difficult to pay essential expenses, and 4% even say it's mission impossible. Only a minority (6%) have not been affected by the rise in the price of goods.
Despite the challenges situation financial situation of the Portuguese improved slightly in 2023. However, it is essential to continue monitoring family spending and implementing effective personal finance management strategies to ensure continued improvement.
