The Austrians are financially well positioned. In terms of general financial well-being, which is made up of the ability to pay bills, saving and general financial education, they are in second place in Europe, as in the previous year, according to the prosperity barometer of the debt collection agency Intrum.
“The ability of Austrian consumers to pay their bills on time was boosted by low unemployment and a healthy disposable household income,” the survey said. While Austria has improved in terms of the ability to pay bills on time, there has been a decline in understanding of basic finance-related terms. Nevertheless, according to Intrum, 69 percent of those surveyed were able to assign common financial terms to their correct definitions.
Less salary due to Covid-19
A third of Austrians had their salaries reduced due to Covid-19, with retirees being least affected. 42 percent stated that their income has remained the same and that there is no threat of a decline.
Among those whose incomes have declined, 57 percent have responded by cutting their expenditures beyond basic needs, while 19 percent have sought government aid. 18 percent were able to compensate for the decline with savings, 16 percent looked for additional work. 13 percent have borrowed money from friends or family, ten percent have borrowed from the bank.
According to the survey, in view of the Covid 19 crisis, two thirds of Austrians are now more willing to support local businesses and companies than they were before the crisis. On average in European countries, this only applies to 59 percent of those surveyed.
Limit spending based on sustainability
12 percent want to spend more money on Christmas gifts to compensate for the difficult year this year – almost 70 percent, however, reject this idea. According to the survey, half of the respondents also stated that they buy fewer gifts now than they did a few years ago because of the garbage that is generated. Almost half (46 percent) said they cut their spending because of their interest in sustainability. That was especially true for younger and female consumers, according to the Intrum survey.
For the prosperity barometer, 1,000 people over the age of 18 were interviewed in 24 European countries and this data was combined with Eurostat information. The research work for the study was conducted between August 28 and October 5, 2020.
