Over-indebtedness of European households in 2008

In 2008 the proportion of individuals in households in a critical situation (owing an amount larger than the household monthly disposable income) was above 5% in five Member States: the United Kingdom, Germany, Cyprus, Austria and Greece. At EU-27 level, around nine people in 10 lived in households with at least one bank account and slightly under one out of two lived in a household with credit or store card(s). When comparing the financial situation to that in the recent past, less than one EU resident in five was part of a household that had experienced a major drop in the household income during the previous 12 months. It should be noted that this survey took place in 2008, at a time when the financial and economic crisis could not yet have begun in some countries. When asked about expectations regarding the financial situation for the following 12 months, 14% of EU residents were in households that thought their situation would improve, against 25% who predicted their financial situation would deteriorate over the year to come.