Consultations on the rise

Families now save on a second car or vacation

Because everything is becoming more expensive, more and more families are having to save.

(Bild: Markus Wenzel)

Necessary household expenses such as food rose sharply again across Austria this year. Debt advisors are having to help more and more middle-class Upper Austrians out of financial crises. Second cars and family vacations have to be cut in many places.

Exactly 4433 euros per month - that is what an average family with two children in Austria has to spend in order to lead a decent life with a minimum of social and cultural activities. This was calculated by ASB Schuldnerberatungen GmbH, the umbrella organization for state-approved debt advice services in Austria, which prepares so-called reference budgets every year.

This includes the costs of housing, public transport (or the car), any school expenses, insurance, after-school care, household expenses and various costs for furniture, clothing and cultural events.

Over 1000 euros for food
"The increases in the cost of living are alarming," explained Johanna Steurer, project manager for the reference budgets. Food is no longer affordable for many people. Even without car ownership, couples with two children aged 7 and 14 have a total monthly expenditure of 4433 euros, while single parents have 3704 euros - a significant increase on the previous year. Even a one-person household needs 1730 euros, which is 137 euros more than in 2023.

(Bild: Krone KREATIV/APA/ ASB Schuldnerberatungen)

More and more initial consultations
A single-parent household with two children now has to budget €1021 for an adequate and healthy diet. "Compared to the previous year, when there was already an increase, we have already seen a significant increase in initial consultations this year," said Thomas Berghuber from the Upper Austrian Debt Counseling Service in an interview with the "Krone" newspaper.

Debt trap snaps shut
The people who have already fallen into the debt trap or are about to do so are increasingly coming from the middle class. "Many of these people are now reaching the limit, but first have to learn how to plan their spending well, which simply wasn't necessary before," says Berghuber.

Thomas Berghuber, Managing Director of Schuldnerberatung Oberösterreich.

(Bild: Markus Wenzel)

This is why people are currently often selling their second car or canceling their vacation in order to be able to afford "normal" life. "Rents are higher in the city, but cars are indispensable for many people in the countryside."

Incidentally, the debt advice services are calling for the minimum subsistence level to be raised to the level of the reference budget in order to enable people with debts to live a decent life and enjoy a minimum level of social and cultural participation.