Debt can be a useful tool in household management -- but our survey suggests it gets a bad reputation in many cases, probably related to whether people felt they had a choice in taking it or not.
Debt recognition is the first step in managing debt well. Indeed, according to the survey 38% of the population in Luxembourg declare running out of money between pay periods, and also 38% of the total population say that they would need less debt to feel in a comfortable financial position.
The way debt is managed unsurprisingly impacts whether people fall into the group who find debt useful, or ultimately restrictive. Having a clear view on the cost of delaying a payment, of what is due and when it is due are all helpful to avoid falling in arrears. Technology can help resisting procrastination and ensuring repayments are not forgotten. In Luxembourg, 69% of the respondents who declared not having paid any bill late in the past 12 months actually paid the bill immediately, although they could have waited.