Almost half or 47% of Latvian households would not be able to meet their credit liabilities in the case one of the household’s breadwinners loses ability to support the family, according to the survey of insurance company ERGO and DNB bank.

Results of the survey also show that for most of respondents (74%) the mortgaged housing is the only place of residence for the family. About half (52%) of all respondents said they don’t have a life insurance.

Only 13% of all respondents admitted they would be able to meet their credit liabilities, while 47% would not be able to do that if one of the household’s breadwinners loses ability to support the family

According to data of the survey, most sceptical about their ability to meet credit liabilities in the case of lose of a breadwinner are Russian families, mostly in Zemgale, with five or more members. Very sceptical are households with members’ average age over 50 years, while the most positive are Latvian families with two members at the age of 21 to 29 years.

“Huge credit liabilities are closely related to the lack of financial understanding in the society, as well as stimulation of consumption needs and focus on short-term gains, not well-considered planning of the household’s future. It could be the main burden for development of the savings culture in Latvia, which is not based on immediate benefit, but requires knowledge about various savings instruments, as well as careful calculation of the household’s income in a longer period of time,” socio-anthropologist Aivita Putnina said commenting on the results of the survey.

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