A study by Intrum also shows that unexpected expenses, stagnant incomes and greater reliance on credit cards are putting pressure on household budgets, with the percentage of people paying their bills on time falling compared with 2024.
Half of Portuguese consumers cited the rising cost of living as the main reason for falling into debt, according to a study by Intrum, which also highlighted the use of credit cards over the past six months to pay bills or other expenses.
In a statement, the organisation stressed that the “increase in the cost of living continues to be the main factor behind the financial difficulties of Portuguese households”. The study found that 50% of consumers in Portugal “who face difficulties in paying their debts point to rising prices of essential goods, such as food and energy, as the main reason for this situation”.
According to the Intrum study, which operates in the credit management services sector in Europe, “43% of Portuguese people fall into debt due to unexpected expenses, such as family emergencies or medical costs”, while 34% point to the stagnation of their “wages or income, as they have not kept pace with the rising cost of living”.
Even so, 77% of consumers in Portugal say they are “able to pay all their bills on time, a figure slightly above the European average”. However, this result “shows a significant deterioration compared with 2024, when 85% of consumers were able to do so”, signalling “increasing financial pressure on household budgets”.
On the other hand, a regional analysis in the study shows that although the rising cost of living is a cross-cutting factor, “the specific reasons for financial difficulties vary between regions of the country”.
In the Autonomous Regions of Madeira and the Azores, 71% of consumers indicate “the rising cost of living as the main reason for difficulties in paying debts”. In Alentejo, meanwhile, “82% of consumers facing financial difficulties point to unexpected expenses as one of the main reasons for indebtedness, highlighting greater exposure to unforeseen financial events”.
The Lisbon Metropolitan Area is where consumers most frequently complain that “their income has not kept pace with the rising cost of living (56%), leading them into debt”.
The Intrum study, the ECPR — European Consumer Payment Report, also identifies differences between generations regarding the reasons for indebtedness.
“Among Generation X, 74% point to the cost of living as the main reason for difficulties in paying debts, making it the age group most affected by this factor. Half of this generation (50%) also mention the impact of incomes that have not kept pace with rising prices.” Among Millennials, however, 43% cite unexpected expenses.
“Generation Z shows greater vulnerability to unforeseen financial events: 59% point to unexpected costs as the main reason for difficulties in paying debts, reflecting a smaller financial cushion to deal with unexpected expenses,” the statement reads.
When asked about the reasons for not paying bills on time, “40% of Portuguese consumers surveyed say they do not have enough money available at the time the payment is due”.
According to the study, “46% of consumers in Portugal say they have used a credit card in the past six months to pay bills or other expenses”, Intrum also noted, while 19% of consumers said they had borrowed money.
The study was conducted by FT Longitude in August 2025, based on a survey of 20,000 consumers in 20 European countries. In Portugal, the sample consisted of 1,000 consumers.
Original Story: Expresso
Edition and translation: Prime Yield