Household debt in Montenegro has climbed to €2.5 billion, rising by nearly 18% compared with the same period last year, according to Central Bank data.
The total is approximately €390 million higher year on year, suggesting that salary growth has not reduced people’s reliance on borrowing. Despite the average monthly wage exceeding €1,000, many households still struggle to cover everyday expenses and unexpected costs without turning to banks.
Consumer and cash loans account for almost half of all household borrowing, while housing loans represent a smaller share. This indicates that many citizens are taking on debt not to purchase property or make long-term investments, but simply to meet current financial obligations.
Economic analyst Mirza Mulešković warns that higher minimum wages have increased people’s borrowing capacity, contributing to stronger demand for loans. However, borrowing to finance daily expenses points to deeper weaknesses in household finances.
He argues that Montenegro must diversify its economy, invest in more productive sectors and create conditions for higher savings and investment. Until that happens, living on credit is likely to remain a reality for many citizens.
