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Financial situation of the households in Portugal: an analysis based on the HFCS 2013
According to the Household Finance and Consumption Survey from 2013, the median value of the net wealth (i.e., the difference between the value of assets and liabilities) of the Portuguese households is around 71 thousand euros, which means that 50 per cent of the households have a lower level of net wealth. The top 10 per cent of households in terms of net wealth hold slightly more than 50 per cent of total net wealth, illustrating the high inequality of the net wealth distribution. For most households real estate has a dominant weight in their assets: 75 per cent of the households are owners of the main residence and about 30 per cent have loans using it as collateral. As compared to the first wave of the survey conducted in 2010, the value of real estate properties declined, contributing to a decrease in the value of household assets. The effect on net wealth was, however, mitigated by a reduction in the debt outstanding amounts. The degree of household indebtedness, measured by the ratio of debt to income or to assets, remained very high for a significant percentage of households. The decline in the Euribor rates contributed, however, to a reduction in the weight of the debt service on income.