One in six households in Belgium spends more money than they earn each month, according to a European Consumer Payment Report published by credit company Intrum. On average, Belgian families dip into the red by €239.
Approximately 35% of consumers across Europe have skipped paying at least one bill in the last 12 months, with one in three now reporting that they feel less guilty for dodging payment due dates than they would have done in the past. 76% report that they are breaking even or over-spending each month.
European consumers do not have sufficient cash reserves to justify their debt; one in five respondents admit that they have no buffer to fall back on in the event of difficulties. Intrum warns that a large percentage of Europeans live "structurally beyond their means."
Compared to other European countries, Belgians dip further into the red than average. Belgians take on 3% more debt than the European average of €232. Despite this, the country is far from being the worst offender. In Norway, a third of houses end up in debt each month, to the tune of €283.
The study also reveals that just 30% of Belgian households manage to save money every month, which is surprisingly greater than the European average. Just over half of Belgian households (55%) reported that they were barely making ends meet.
Despite this, Intrum notes that, as a result of its automatic salary indexation system, Belgium was the only European country where real salaries increased.
The European Consumer Payment Report, which is set to be published before the end of the year, interviewed 20,000 people in 20 European countries, including around 1,000 Belgians.
