Slovakia's households face higher loan costs and dwindling savings

A recent survey of Slovak consumers shows that 77 % of respondents choose a loan primarily based on the size of the monthly instalment, even though this focus can add hundreds of euros to the total cost of credit. Extending the repayment period lowers the monthly payment but increases overall interest and fees, a practice that many borrowers are unaware of.

At the same time, savings among Slovak families are shrinking. Twelve percent of households have no savings at all, and another 16 % hold less than one month’s income. Only 15 % have a three‑month reserve, while 27 % have savings equivalent to five or more months of earnings. The survey found that 42 % of respondents say their savings are lower than a year ago, and nearly half feel their financial situation has worsened.

Most families keep their money in savings accounts (47 %) or current accounts (38 %). A quarter keep cash at home, and a smaller share invest in stocks, bonds, real estate or cryptocurrencies. Experts stress the importance of a longer‑term financial plan, yet only five percent of households have a budget extending beyond six months.