Borrowing Money in Austria Not Uncommon

Whether for a car, groceries, or housing costs: many people in Austria borrow money to finance their daily lives. This was revealed by a representative survey conducted by the market research institute Civey on behalf of BAWAG. According to the survey, more than 40 percent of Austrians have borrowed money in the past two years - mostly from family members (47 percent), but also as a loan from the bank (40 percent).

Where does borrowed money go?

In addition to expenses for the car (28 percent), the surveyed adults used the borrowed money for everyday costs such as groceries (23 percent) or housing (21 percent). A little more than one in ten also used the borrowed money to "treat themselves," for medical expenses, or to travel (each 10 percent). The survey explicitly excluded real estate financing or loans for business start-ups.

According to the survey, especially 18 to 29-year-olds (60 percent) borrow money, while people over 64 years do so significantly less often (21 percent). As age increases, the tendency to borrow money from family also decreases. Young people under 30 borrow less frequently from the bank, where high interest rates apply for overdrawing the account. Instead, they borrow more often from family and friends. From the age of 40, more people turn to banks again. There are differences between the genders: men borrow money from the bank more often than women, while women borrow money within the family more frequently.

Often less than 1,000 euros

For nearly half of the respondents, the borrowed amounts were less than 1,000 euros, with smaller amounts up to 200 euros being particularly common among those under 30 and over 65. Nearly a quarter repay their debts within less than three months, while another quarter takes more than two years. Around a quarter of the respondents expect to have to borrow money again in the next two years.

(APA/Red)

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