Over a third of Finns use credit to pay bills, survey finds

An increasing number of Finns are paying their bills on time, but a concerning trend has emerged: 35% of consumers reported using credit to cover one or more bills, according to the European Consumer Payment Report 2024 by Intrum. This marks a rise from 29% in 2023. While Finland's financial situation has improved slightly, it lags behind other European countries in recovery and stability.

The report shows that 63% of Finns paid their bills on time in the past year, up from 56% in 2023. However, reliance on credit to manage expenses has grown, with many using loans or maxing out credit card limits to pay bills. Intrum noted a worrying increase in repeated use of credit, even as one-off instances declined. Additionally, 15% of Finns reported struggling to manage their debts, nearly double the European average of 8%.

Despite a modest improvement in bill payments, many Finns face financial instability. Only 30% of respondents said they can save or invest for the future, while just 20% believe they could secure a higher-paying job. Concerns over unemployment are widespread, with 57% predicting a sharp rise in the next two years—much higher than the European average of 43%. Almost half of Finns (49%) doubt the national economy will improve.

Juha Iskala, Commercial Director at Intrum Finland, expressed alarm over the findings. “The growing reliance on credit for bill payments is a deeply troubling trend. It puts people in a cycle of negative finances with no buffer for unexpected expenses, compounded by rising interest costs.”

Finnish consumers were also notably less optimistic about major purchases. According to Statistics Finland, many view the current economic climate as unsuitable for significant spending. Iskala explained, “The reluctance to make large purchases suggests people are still cutting back and saving for emergencies, despite lower inflation and falling interest rates.”

Economic pessimism spans all age groups but is particularly pronounced among middle-aged adults and young people. Among 45–54-year-olds, 62% believe Finland’s economy will not improve, and 63% feel they cannot build wealth no matter how hard they work or save. Alarmingly, 62% of 18–21-year-olds share the same bleak outlook on their ability to achieve financial stability.

“This widespread pessimism could reduce consumer activity and negatively affect investments,” said Iskala. “It is especially concerning that young adults are losing hope, which could impact their motivation and decisions about education, career paths, and other long-term plans.”

Iskala emphasised the importance of restoring economic confidence and providing practical tools for individuals to improve their financial situations. “Strengthening trust in the economy and offering concrete solutions can help people regain control over their finances and boost optimism for the future.”

The European Consumer Payment Report 2024, released on 16 November, surveyed 20,000 consumers across 20 countries, including Finland. Conducted by Longitude, the study explored household financial habits, consumption patterns, and month-to-month money management. Fieldwork took place from 4 July to 25 August 2024.

HT