A new report from debt collector Intrum has revealed that more than three-quarters (77%) of Belgians are now paying their monthly bills on time, marking a 12% improvement compared to last year.
This positive trend, reflected in the “European Consumer Payment Report” released on Thursday, suggests that Belgian consumers are managing their finances more effectively despite ongoing economic pressures.
The report provides a detailed snapshot of the payment behaviors of consumers across Europe, with Belgium showing a significant reduction in late payments.
In 2023, one in three Belgians struggled to pay their bills promptly, largely due to the economic challenges posed by high inflation and soaring energy prices.
This year, however, the situation appears to have improved, with fewer consumers facing delays in settling their financial obligations.
Despite the overall improvement, the report identifies several key reasons for late payments. Forgetfulness remains the leading cause, affecting 40% of individuals who reported paying bills late.
Another 28% cited a lack of funds, while an equal percentage (28%) pointed to technical problems such as banking issues or system failures.
While these reasons are relatively common across Europe, it is worth noting that financial strain caused by the cost of living remains a factor for many.
The 12% increase in on-time payments comes as a relief to Belgian households, who have been under financial strain in recent years. Rising inflation and higher utility costs have forced many consumers to adjust their spending habits.
As a result, people have become more cautious in prioritizing essential expenses, with non-essential or “luxury” purchases often deferred or canceled altogether.
This shift in consumer behavior has resulted in more timely payments for bills, as households focus on keeping up with basic costs.
Despite the positive shift in payment habits, Belgians are still feeling the effects of the rising cost of living. The report notes that many consumers are taking steps to manage their finances more carefully, including cutting back on discretionary spending.
Holidays and luxury purchases have become less of a priority, with the focus now on ensuring that essential needs such as housing, energy, and groceries are met first.
The figures from Intrum’s report suggest that Belgian consumers are becoming more financially resilient and better at managing their cash flow.
However, the overall picture is one of ongoing caution, with households carefully weighing each expenditure and looking for ways to cope with the economic uncertainties ahead.
For businesses, the improvement in payment habits is a welcome sign. On-time payments contribute to better cash flow and stability, which is particularly crucial in an economic climate where unpredictability and inflation continue to pose challenges.
As the year progresses, it remains to be seen whether this positive trend in payment behavior will continue.
However, for now, the 77% of Belgians paying their bills on time is a reassuring signal that, despite ongoing economic challenges, consumers are taking proactive steps to maintain financial stability.