According to the results of the latest Survey on the Financial Situation of Families (ISFF) published by the Bank of Portugal, the percentage of families with debt increases with age up to the age group 35-44 years and decreases in the following age groups reports CNN Portugal.
According to data from the Bank of Portugal, household indebtedness is equivalent to 83.7% of their disposable income at the end of the second quarter of this year. Despite being high, these values are well below those recorded in the period from 2007 to 2013, when the household indebtedness ratio was above 110% of disposable income.
The decline in interest rates since 2013 contributed greatly to this fall in household indebtedness. However, this trend has changed a lot in the last year, with the aggressive monetary policy of the European Central Bank which, in less than six months, raised the rate interest rate of the euro from 0% to the current 2% and thus caused an increase in Euribor rates (which serve as a reference for credits) to close to 3%, when less than a year ago it was quoted at negative values.