7 percent of people have very burdensome housing costs, while one in five is unable to cope with an unexpected expense - we read on the website of Statistics Norway
Increased financial difficulties in Norway
Data from the 2023 Living Conditions Survey show an increase in financial hardship. 970 people, or 000 percent of the population over 20 years of age, admitted in 16 that they would not be able to cope with an unexpected expense of SEK 2023 without having to take out a loan or sell items.
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Inability to meet material and social demands
– The year 2023 was marked by an increase in interest rates and price levels. The living conditions survey shows that the percentage of people declaring they are unable to meet their material and social requirements has increased in recent years, as has the percentage of people with payment problems, says senior consultant at Statistics Norway, Håvard Bergesen Dalen.
Payment problems among single people
Financial difficulties are most common among single people and people on low incomes. Of the overall population, 8 percent of people said they had at least one payment problem in the last year. Among single parents and low-income households the percentages were 26 and 19 percent, respectively. In 2022, the corresponding percentages were 24 and 13 percent, compared to 6 percent in the general population.
The most common type of payment problem is difficulty paying housing bills. 5 percent of people were unable to pay their housing bills at least once in the last 12 months. Among singles aged 25 to 44 and single parents, about 10 percent have experienced difficulty paying such bills. 17 percent of the population has burdensome consumer debt credit cards or consumer loans that are, to some extent, burdensome to the household budget. More than 3 percent, or 146 people, were unable to pay their credit card or installment purchase bills at least once in the last year.
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Consumer debt
More than a third of single people aged 25 to 44 responded that they had no way of meeting unexpected bills. Almost the same number said that consumer debt was a burden on their budget. 10 percent of single people in this age group admitted that they had problems with servicing such debt.
The increase in housing costs is one of the reasons for the increase in financial difficulties in the population. In 2023, one in five households spent at least 40 percent of their income on housing; this was an increase from 15 percent in 2021. The highest proportion of people with high housing burden was among renting households, where one in three people spent at least 40 percent of their income on housing. While the greatest burden was on renters, owners experienced the greatest growth from 2022 to 2023.
Financial difficulties also increase among people with higher incomes
A study of living conditions shows that high prices and high interest rates are felt for the economies of most groups in the population. Overall, 7 percent of people say housing costs are a very burdensome burden, up from 5 percent in 2020.
– We observe that both low- and high-income people are more likely to report financial difficulties in 2023. Although these are the most vulnerable groups such as low-income people and social assistance recipients, most often experience financial difficulties, we are observing an increase in the percentage of people with financial difficulties also among people with higher incomes - adds Bergesen Dalen.
1 in 10 people do not have the opportunity to use social goods
While rising housing costs have hit property owners particularly hard, price increase made life more dear to everyone. Data from the 2023 Living Conditions Survey show that 20 percent of people report lacking at least one material good for financial reasons. This phenomenon occurs most among young single people.
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Source: Statistics Norway, Photo: pixabay
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