What are the different aspects of consumer credit

In 2016, it is clear that the use of consumer credit by French households has been constantly evolving for many years.

The figures show that French households go into debt while using mortgage credit for the acquisition of their principal residence. However, the French are more likely to increase the debt ratio of their homes by subscribing to consumer credit contracts.

Household debt on credit

Household debt on credit

According to the source UFC-QUE Choisir, an association for consumers, according to a survey established in 2007 about the “over-indebtedness of individuals “, more than half of French households 52% (or 12.5 million households) had at least a credit.

This panel of French households was made up of 18.8% of the households with repayments essentially that real estate loans, of 11.8% having 50% of consumer loan and 50% of the mortgage, and 21.4% had only consumer credit. Of which 23% of the debtors of a mortgage were first time buyers.

The finding was that 33% of households were in debt due to consumer credit underwriting with the characteristics of (excluding bank overdraft authorized):

  • Various personal loan
  • Credit works
  • Renewable credits
  • New or used car credit
  • Consumer loan not allocated to a specific expense

The behavior of French consumers

The behavior of French consumers

However, it has been strongly noted that the behavior of French consumers has changed significantly from 2008 to 2015 during the crossing of the crisis that completely upset the consumption of French households.

According to the twenty-eighth annual report of the Observatory of Household Credits the share of households in France with at least one credit in 2015 was 46.5%, a decrease of 5.5% over the last eight years!

It is noted a 1.7% increase for households holding only the Real Estate to reach 20.5%. Households with a share of consumer credit and mixed receivables decreased by 2.1% to stabilize at 9.7%. As for those who hold that consumer debt has fallen sharply to represent 16.3%, a substantial decrease of 5.1%. The share of first-time buyers has remained stable.

The fact is that the distribution of consumer credit in all its forms has declined sharply.