Fewer Estonians Able to Save
Sixty-five percent of families are able to set aside money from their monthly income, down from 72 percent two years ago, according to a study by TNS Emor.
The study, commissioned by the Bank of Estonia, shows the number of families with savings has dropped from 55 to 53 percent during the same period. Despite 4 percent inflation and rock-bottom interest rates, the general attitude towards saving remains positive with over 80 percent of households supporting the idea in principle.
In September close to 239,000 families, or 41 percent of all households, had loans, including mortgages. These numbers have been stable throughout the last two years.
The reasons for taking out loans have remained the same, with loans mostly needed for buying, building or repairing homes. An increase in the purchase of durable goods suggests that caution shown during the recession has receded somewhat.
The families who have taken out loans are mostly those who recovered quickest from the crisis. Families with loans believe themselves to be better off economically than the average Estonian family, they are more optimistic, their income has risen and they have more money available for saving.
The number of families having difficulties paying back their loans has fallen from 24 percent two years ago to 15 percent today and the difficulties with payments are mostly considered to be temporary.
The monthly payment of principal and interest is below 20 percent of income for around half of families with loans. The families with the greatest difficulties are those whose monthly loan repayments exceed 40 percent of their income, and these make up one tenth of families with loans.
Some 116,000 families are capable of taking out loans in the next year, mostly to buy homes or vehicles or use their credit cards. Three-quarters of households thinking about taking out new loans already have other loan commitments.