The share of Europeans who pay their bills on time continues to increase last year, according to the European Consumer Payment Report (ECPR). Last year, 76% of Europeans managed to repay their debts on time, which is 2 percentage points higher than in 2024 and much higher than the share from 2023 – then their share fell to just 63%, the lowest in recent years. Lack of money is the leading reason for delayed payments – 40% of Europeans fail to settle due to this reason – exactly the same as in 2024. However, fewer people do not pay because they forget (see the chart).

After several difficult years, the European economy shows uncertain but visible improvement. Most consumers are regaining financial confidence, especially for covering daily expenses, the report states. However, many Europeans remain uncertain about how sustainable the recovery is. Economic challenges persist – slow employment growth, reduced job openings, and rising unemployment in some countries. The strong wage growth in the EU and the UK helps restore purchasing power, according to the survey data.

Confidence in paying debts on time varies greatly depending on financial status – 84% of high-income individuals have no problems paying all bills on time and can cover an unexpected expense of EUR 400. However, this applies to only slightly over half of low-income individuals. There is also a systemic problem with missed payments – only a quarter of people regularly missed payments in 2024, while last year it was already more than half of Europeans. According to the report, this is the highest proportion since such a question in the report was implemented in 2019.

The EU is divided regarding indebtedness – eased monetary policy helps improve living standards in countries where inflation allows it. According to experts cited in the EPR, food and service prices remain high. Nearly half of those surveyed in the poll share that the high cost of living expenses in recent years has permanently affected their financial well-being. For almost a third, this has also impacted their mental health.

Saving as a financial buffer is not a priority for every European and there are significant differences between countries. The explanation, according to the report, is high inflation in some countries, currency risks, as well as cultural reasons and availability of social assistance. There is a positive correlation between countries where more people save and those less affected by economic instability. For example, changes in the economy affect people in Southern Europe more strongly, as well as parts of Central Europe – Poland, Czech Republic, Slovakia, Hungary, along with Finland. However, most savings are found in Northern countries, Switzerland, and Austria. Spain and Italy are exceptions – people save regularly there, but also feel affected by economic shocks. Younger generations are also more affected by lack of funds – 52% of those struggling with payments from the so-called generation Z delayed bills and installments due to lack of funds last year. In 2024, this was a reason for only 20% of people with arrears from this generation.