Half of Portugal’s families with children live on less than €1,000 per month and 18% cannot afford to pay household bills such as water, electricity and gas, according to a study by DECO.
Pordata’s figures yesterday showed that one in five people in work in Portugal earned the minimum wage last year.
Unsurprisingly, families with the most difficulty in coping with everyday expenses are those that have children, even if both spouses work.
"Half of these households live on less than €1,000 per month, many of those working take home the national minimum wage (€505 x 14 months), or less," concludes DECO.
The results of the survey indicate that about two-thirds live with the burden of a mortgage, and there are many who have personal loans to pay for cars and furniture, for example.
Credit cards (37%) and store cards (26%) are also drains on household finances with many paying only the minimum monthly payments. 75% of respondents classify their situation as difficult or very difficult.
The study concluded also that "the state of household finances has deteriorated in recent years for many of these families."
The numbers unable to pay for basics are startling, with defaults on electricity, gas, water, insurance at 86%; rent or house loans at 83%; other current expenses such as food, clothing and fuel at 79%; education for children at 75%; loans for car or other items at 73%; and health care at 62%.
More than half the respondents said they paid bills after the deadline and invoices that regularly were outstanding were for communications such as fixed and mobile telephone services, television and Internet.
DECO concluded that Portugal, in comparison to other austerity EC countries such as Italy and Spain, has suffered the greatest drop in earnings and the highest drop in disposable income and spending power
A third of families surveyed had borrowed money from family or friends to help keep their heads above water.
See also: http://www.algarvedailynews.com/news/7036-rise-in-minimum-wage-contracts
