Life on loan is normal for most Czechs
Nearly 70 percent of Czechs consider it normal to have a loan, according to a survey conducted by the market research firm GfK. According to the survey, carried out among 900 respondents, some 35 percent of Czechs have some kind of ongoing loan and 31 percent of those asked said they were planning to take a loan in 2016.
In 2015 most Czechs borrowed money to buy a house or a flat (20 percent), to purchase household appliances (18 percent) or to reconstruct their living space (17 percent). Czechs also frequently borrow money to buy a car. In 2014, it was 12 percent of the total, while in 2015, it was 17 percent. Last year, nine percent of Czechs took a loan to finance previous debt, while in 2014, that figure stood at 11 percent.
The survey suggests that two thirds of Czechs consider it common nowadays to have debt. People with completed secondary or university education usually borrow from banks, while people with basic education turn more frequently to non-bank institutions.
One quarter of those who have a loan have a bank loan and more than a quarter have a purposeless loan. Men tend to borrow more than women.
Among the banks people said they would borrow from in 2016 was Česká spořitelna, Moneta Money Bank and Air Bank. The most frequently mentioned non-bank institutions included ANO spotřebitelní družstvo, GE Money Auto and sAutoleasing.
According to the survey, the number Czechs who believe borrowing is normal is increasing. It rose to 66 percent, that is three percentage points more than in 2014. One third of people agree that having a loan is advantageous and two thirds said that they only buy things when they save enough money.
A similar survey carried out earlier this year suggests that every third Czech takes a quick loan at the end of the month before getting the monthly salary. They borrow on average 5,000 crowns and most of them manage to pay off the debt within 11 days.
Some 28 percent of these people live in the regions of Ústí nad Labem and Moravia Silesia, where the average monthly wage is around 22,000 crowns.
While men mostly use the money to buy electronics, women borrow to pay off other debts or to buy household products.
