What to note about the debt ratio of French households?

The French are indebted to the tune of 1189 billion euros in early 2015 against 664.9 billion euros 10 years earlier. A debt ratio three times higher compared to the increase in income since 2005.

 

A sharp increase in the debt ratio over the last 10 years.

A sharp increase in the debt ratio over the last 10 years.

French households have a higher debt ratio, especially during the period from 2005 to 2015. According to the Banque de France, this is a curve recorded since the 1990s.

In addition, an upward trend is becoming more rapid in the 2000s to raise household debts to 1.189 billion euros to date, 79% higher than the 2005 level (664.9 billion euros). euros).

Unsurprisingly, household income has not grown at the same rate! During the same period, the resources of the French jumped only by + 24.7%.

Side weight of the debt :

It weighs 85.3% of disposable income in 2015 against 59.5% in 2005, and in comparison, against 82% for German households. Worse, according to the estimate made by the Bank of France, this uptrend is not about to change.

 

Most indebted households category

Most indebted households category

INSEE classifies these indebted French people by age group, occupation and residential area. For the first categorization, people between 30 to 39 years are the most indebted. According to 2013 figures, nearly 70% of households in this age group have debts. This is in most cases, financial aid for a real estate project.

In contrast to those under 30 and over 60 who often focus on consumption .

At the socio-professional level, executives are the most indebted at 68.7%, followed by intermediate professions. Unskilled workers, on the other hand, are the least indebted, with a 44.2% debt ratio .

According to the graph of residential areas, the inhabitants of the rural communes are the most affected by excessive indebtedness with a rate of 53.1% in front of the urban units whose demography has less than 20 000 inhabitants (48.1%).

Urban units with 100,000 to 200,000 inhabitants are the least indebted with a rate of 39.6%.

 

How to fight against overindebtedness?

debt problem

There are certainly many ways to combat over-indebtedness, but the most effective solution is the bundling of loans.

That is, the repurchase of credits in order to obtain less monthly payments, and a repayment period of the balance of the total amounts of these grouped debts.

To get the most out of this financial system at the debt restructuring aspect, simply contact a credit redemption broker likely to get a better offer from the chosen credit institution.

The goal is to be able to Jimr his project or his consumption while continuing to devote a large part of his income to current expenses.

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