Three out of four Portuguese families have difficulty paying bills

Three out of four households had difficulty paying bills in 2023, according to annual barometer Deco Proteste, which identifies housing as a “key factor in the financial crisis” and lists Alentejo and Centro as the regions with the greatest difficulties.

The barometer, which aims to measure the ability of Portuguese families to pay everyday expenses in six areas – food, education, housing, leisure, mobility and health – surveyed almost seven thousand people, 75% of whom admitted to having difficulty paying. their accounts and 7% are in a “critical situation.”

“The housing crisis is becoming a major factor in the financial stress of Portuguese families, suppressing any relief provided by lower inflation,” emphasizes Deco Proteste.

Pointing to rising interest rates as “one of the reasons why nearly 28% of households are finding it difficult to repay bank loans,” the consumer association notes that “the cost of rent has also contributed to the difficulties experienced,” with 23% of households being renters. are struggling to pay rent on their homes.”

While costs for mobility, healthcare and food have improved, the barometer shows that inflation “continues to negatively impact a significant number of Portuguese” with around a third (31%) of households reporting they are having “much more” difficulty paying expenses. significant, while 4% say it is “mission impossible”, and only a minority (6%) have not felt the impact of rising commodity prices.

The greatest difficulties are presented by single-parent and large families, as well as families in which one of the members is unemployed, and in the case of single-parent families, available data show that “about 75 thousand in Portugal are faced with a situation of extreme poverty.”

In the analysis by region, Alentejo and Centro are highlighted as the areas where people live with the greatest difficulties, with Castelo Branco being the area with the worst situation and Braganza where people are living “most easily”.

Based on the results of the survey, the association concludes that “the prospects of the Portuguese people for the remaining months of 2024 are not optimistic” and predicts “increasing financial difficulties in the current climate of inflation and uncertainty regarding the evolution of Housing Loan interest rates.”

Food (meat, fish, vegetables and fruits, etc.), utilities (gas, electricity, water, etc.) and healthcare are the expenses where the largest increases are expected, according to Deco Proteste.

In 2023, the 10 expenses that grew the most were home rental (+11% compared to 2022), restaurants (+7%), credit (+6%), long-term vacations (+6%), books and “streaming” (+4%), higher education (+4%), concerts, theater, cinema, museums (+4%), sports (+4%), health (+4%) and vegetables and fruits (+4 %).

The Deco Proteste survey was conducted between December 2023 and February 2024 and collected 6,734 valid responses. To reflect the reality of Portuguese families, the data was weighted by age, gender, region and education level.