By Zoran Radosavljevic
ZAGREB, April 23 (Reuters) - Croatians will soon be able to learn how to keep costs under control when a local institute publishes the first anti-debt guide in one of Europe's more indebted countries.
The Institute for Public Finances (IJF) will in early June publish the first 'Guide for the over-indebted', addressing a habit Croats developed since the fall of communism -- swiping their credit cards and taking loans they can barely service.
Following the arrival of foreign banks and retail chains in late 1990s, a credit boom quickly made Croatia one of the biggest spenders in the region.
Research by the state-funded IJF puts Croatian debt at some 36 percent of gross domestic product, more than in most post-communist countries although behind the euro zone.
Predrag Bejakovic, the guide's author, said most Croats were keen to display a wealthy lifestyle that belied their income.
"We love to dress smartly, go out, travel, take summer and skiing holidays," he said.
"The average Croat wants to keep up with friends, neighbours, colleagues. He will often buy the latest mobile phone or a fancy car, even though he does not really need it."
Bejakovic said each household had on average 1.4 loans, worth around 19,500 kuna ($3,400) a year, or more than three average monthly salaries. A lot of that came from the generous use of credit cards.
"That is one of the first bits of advice we dispense. Pay cash. Throw away your plastic."
Other tips are: stop smoking, drive to work with your neighbour, or simply, stop spending more than you earn.
"People have to realise they have to be more responsible and there is no rich uncle who will come in to help," Bejakovic said.
He said the crisis had made spending more rational -- as evident in the 40 percent drop in car sales in the first quarter, but had also strengthened a belief deeply held by many Croats, that the state should provide for virtually everything.
"Right now, everyone still believes the state should look after their health, pensions, jobs, university education. That is exactly the mindset we want to change, to make people fend for themselves. And that is very difficult". (Reporting by Zoran Radosavljevic; editing by Andrew Roche)