– I don’t quite keep track of how much I use, but I think I’ve used less. I have cut out giving unnecessary gifts, and only give to those I care about the most, says Edvard Aasen. But most of us failed to reduce our consumption last year. Almost NOK 100 billion was spent on trade before Christmas. Thus, there was no decline in Christmas shopping despite tighter times, which worries economists. – Now people are eating away at saved funds. They manage to keep consumption artificially high, says Andreas Ørpetveit, postdoctoral fellow at the Norwegian School of Economics (NHH). Many postpone repayment of the mortgage through interest-free installments. Photo: Thomas Nikolai Blekeli / news Luxury consumption is stable Many people now resort to consumer loans to raise money for purchases. Consumer debt rose by NOK 2.4 billion in 2022. – This indicates that people see this as a short-term situation. They think that it won’t be that many years before things turn around, says Ørpetveit. – The advice is simple: Don’t spend more money than you have. Ideally do not spend more money than you receive in salary so that you have a sustainable economy, says Andreas Ørpetveit (NHH). Photo: Oddgeir Øystese / news Our luxury consumption therefore remains stable, at the same time that many fixed costs such as mortgage interest, petrol prices and food prices have gone up. – They have increased insanely and make it more difficult to reduce. Then it is luxury consumption that must be cut, such as Christmas shopping, says Ørpetveit. Fund managers warn that, for the first time in ten years, Norwegians are selling more mutual funds than they are buying, according to figures from Nordnet. Food prices have skyrocketed. Such costs are more difficult to cut. Photo: Josef Benoni Ness Tveit / news “Abnormal” inquiries to the banks The banks are also concerned. Sparebanken Vest receives several inquiries from customers that they normally do not hear from. Customers who initially had a stable income and good finances ask for interest-free repayments on the loan, i.e. a period in which you only pay interest and costs. – It is worrying. For many customers, action is now required. You have to take control and know what goes in and out of the account. Adjustments must be made in good time if there is a need to reduce consumption, says Jan-Tore Smith, bank manager at Sparebanken Vest. The banks receive inquiries for help in handling the situation from customers they normally do not hear from. Photo: Alrik Velsvik / news He believes that expectations related to Christmas from friends and acquaintances made it difficult for most people to cut back on Christmas shopping. – We know that changing behavior is really difficult, says Smith. Temptations gain the upper hand after the pandemic The pandemic may have contributed to making it difficult to change financial behaviour, the bank manager believes – Many people still have a desire to do things that were not possible during the pandemic. It is clear that this contributes to making the change even more difficult, says Smith. Jan-Tore Smith is bank manager at Sparebanken Vest. Photo: Oddgeir Øystese / news
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– Changing behavior is really difficult – news Vestland
