Seven in ten households say under financial stress

Nearly seven in ten households face financial distress to a lesser or higher degree, while four in ten families have taken out bank loans, according to a survey published on Tuesday.

The consumer survey was carried out by Cypronetwork for the Union of Cyprus Consumers and Quality of Life. It polled 1,000 people between February 16 and March 9.

About a third of respondents (34 per cent) stated that their household earned enough income to lead a comfortable life.

Meanwhile 26 per cent said they face some financial difficulty, 25 per cent can barely meet their financial obligations, 13 per cent are in great difficulty, and 2 per cent cannot make ends meet.

Regarding earnings, two in three households said their income has remained unchanged.

A significant finding was that a little more than 40 per cent of households are borrowing from the banks. Of those who are in debt, seven in ten consider the debt burden as “quite significant” or “very significant” – while 30 per cent think their family is “over-indebted”.

Four out of ten households believe they will “probably” or “definitely” be unable to meet their loan obligations in the future.

A major complaint concerned the cost of living – rising food prices and more expensive electricity.

One in four respondents said they have had to cut down on using their vehicle because of higher fuel prices at the pump.

And two in three households report an increase in utility bills – electricity, water and phone.

Also, one in four households have reduced their day-to-day purchases of sundries –while one in five households are buying more.

Respondents were asked to rank what they consider the greatest problems facing society. Here, 63 per cent said the rising prices of goods and services, followed by corruption at 56 per cent, fuel price increases at 48 per cent, and a rise in crime and violence at 29 per cent.

A third (33 per cent) think the economy will worsen in the coming months, with just 16 per cent believing it will get better.

The survey also gauged attitudes toward issues such as transparency in public life, the responsiveness of state services, equal treatment and equality before the law. The results showed high negative assessments, ranging from 63 to 75 per cent.

In addition, saving, investments and home purchases were down.

Commenting on the findings, the head of the Union of Cyprus Consumers and Quality of Life Loukas Aristodemou said that “every person, every consumer saw themselves in this survey”.

He added: “When consumers say they’re not satisfied with the conduct of the state and generally the conduct of institutions, it means they understand what quality of life means.”

The survey’s findings show a general disaffection among the public, he said.