Characteristics of Household Debt in Austria

The level of household debt has risen in many countries, including Austria. This study examines whether the increased level of debt represents a risk to financial stability. The data used are mainly derived from a survey on households’ financial wealth conducted by the Oesterreichische Nationalbank (OeNB). Analysis shows that high-income households tend to have more debt than low-income households; the latter, however, are more burdened by their debt. Demand for consumer loans tends to be highest among high-income households with little financial assets. As high debt levels are mostly concentrated among affluent and high-income households, household debt in Austria does not constitute a threat to financial stability. Borrowers with lower incomes and/or low levels of wealth are particularly vulnerable borrowers.