More than half of families resort to loans from banks or financial entities to meet unexpected expenses
Life is becoming more expensive and the unstoppable rise in prices is putting the purchasing power of thousands of citizens between a rock and a hard place , which is being reduced little by little, creating greater difficulties for them to make ends meet without end up in the red. Therefore, it is not surprising that people have to resort to savings and reduce expenses to be able to face this situation of uncertainty. However, 25% of households cannot save anything at the end of the month and only one in three people manages to save up to 10% of their income, according to data released by the Sustainable Economy Observatory in the Home 2022.
Likewise, in the world, the most common are homes where an average of three or four people live together, and in more than 25% of these cases, in total they do not reach 2,000 dollars per month of income with which they must face all expenses. associated with the property, as the study shows. However, there are families that find themselves in an even more complex situation, since in 6% of households up to five people or more live together with total income that does not even reach the Minimum Vital Income, being below one thousand dollars per month.
Therefore, despite the fact that the income of many households is insufficient, the unavoidable expenses associated with housing continue to be high , making it an odyssey to make ends meet. The household item whose prices pose a greater risk to the economy of families are expenses on supplies such as electricity, gas and water . After these, on a second level are the prices of expenses for transport, food and the payment of housing. Finally, items such as leisure, education, clothing or travel, among others, are the ones that pose the least risk to the economic stability of families, although they still affect significant percentages of households.
70% of households cannot cope with unexpected expenses of 1,000 dollars
However, it is not only extended families that have to face this problem, since it is also observed in single-person households. In this sense, 55% of households with two or more members who earn less than a thousand dollars cannot save anything at the end of the month .
In addition, in the face of unexpected expenses, having savings becomes essential on many occasions so as not to end up in the red. Despite this, seven out of ten households cannot cope with expenses of this type of one thousand dollars with their monthly salary. Of the total households surveyed, 51% would have to pull savings and 17% could not afford it.
In this context, to meet these expenses, more than half of those surveyed (53%) resort to loans from banks or financial entities , and the latter for amounts of up to a thousand dollars; or even ask family or friends for help, an alternative to which 46% of peoples resort.
“In order to prevent the return from lasting forever and continuing in subsequent years, it is advisable to resort to financing only to face an extra expense that arises in a timely manner and avoid, whenever possible, resorting to a loan to finance the recurring expenses that they are presented every month or year”, explains the financial director .
Therefore, the economic organization of households is essential so as not to end up in the red at the end of the month. The common fund and the distribution of expenses are the most adopted options to face the economy of a household , although in two out of ten cases it is a single person who is in charge of all the domestic expenses.
Likewise, one out of every three people provides financial help to another person, which is generally their children , for whom this help is basic or at least very important for their livelihood in three out of four cases. In 24% of the time the people who receive it depend financially on their benefactors and in more than half of the cases these aids are offered on a monthly basis on a regular basis.