Study shows over half of Portuguese people have short-term debts.
A study found that 59% of Portuguese people have short-term debts and 9% admit to not making any payments to settle them. Generation Z is the most affected, while Boomers have higher payment capacity.
Short-term debts affect all generations in Portugal.
A study conducted by credit manager Intrum in 2024 reveals that 59% of Portuguese people have short-term debts, with 9% admitting to not making any payments to settle them.
According to the European Consumer Payment Report 2024 (ECPR 2024) cited in Notícias ao Minuto, more than half of the Portuguese population has short-term debts. The Generation Z (18-24 years old) has the highest default rate, with 12% of these young people not paying their debts.
Among Millennials (25-39 years old), 26% indicate that they can only afford to pay between 1% and 10% of their debts, while 9% of Generation X (40-54 years old) admit to not making any monthly payments and 24% in this age group can only cover a small part of their financial obligations (between 1% and 10%).
The Boomers (55-64 years old) show a higher ability to pay, with 7% being able to pay off more than 75% of their debts. Moreover, this is the generation with the highest percentage of individuals with no short-term debt (52%).
"This scenario reinforces the importance of promoting financial literacy, making it an essential pillar in education from an early age, to avoid situations of excessive indebtedness," said Luís Salvaterra, CEO of Intrum.
Intrum publishes the European Consumer Payment Report annually since 2013 to analyze the consumption habits and management of European families' budgets.
The study is based on a survey conducted simultaneously in 20 European countries, including Portugal, and had the participation of 20,000 consumers in the 2024 edition – 1,000 of which were Portuguese. The survey was conducted between July and September of last year, as reported in the news.
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