OREANDA-NEWS. December 11, 2012. Research by TMS Emor into the financial behaviour of Estonian households shows that 65% of households are able to put some money aside every month if needed, reported the press-centre of Eesti Pank.

Two years ago the percentage of families saying they could save was 72%. The proportion of families who have some money saved fell in the same period from 55% to 53% but the general attitude towards saving remains positive, with more than four fifths of households believing that putting some money aside is the right thing to do in principle.

Belief in their own ability to save has fallen most among retired households, with only 45% saying they are able to save something every month. However households with loans have not lost any of their belief in their ability to save, and 75% of them are able to save money.

In September close to 239,000 families, or 41% of all households, had loans. These numbers have been stable throughout the last two years and the reasons for taking loans have remained the same, with loans mostly needed for buying, building or repairing homes. There was some increase in loans for purchases of durable goods, which suggests that the caution shown during the crisis has receded somewhat.

The families that have taken loans are mostly from among those who recovered quickest from the crisis. Families with loans believe themselves to be better-off economically than the average Estonian family, they are more optimistic, their income has risen and they have more money available for saving than the average. The number of families having difficulties paying back their loans has fallen from 24% two years ago to 15% and the difficulties with payments are mostly considered to be temporary.

The monthly payment of principal and interest is below 20% of income for around half of families with loans. The families with the greatest difficulties are those whose monthly loan repayments exceed 40% of their income, and these make up one tenth of families with loans.

Some 116 thousand families are planning to take loans in the next year, mostly to buy homes or vehicles or from their credit cards. Three-quarters of those wanting loans already have some sort of loan commitment.

The survey by TMS Emor was conducted in September this year and covered 949 families, with respondents aged between 18 and 74. The survey was commissioned by Eesti Pank.

TNS Emor has been conducting the F-monitoring survey since 1998. The survey maps changes in how Estonian residents use money and in the options and desires behind their financial behaviour.