Credit consolidation: over-indebtedness weakens many households

Over-indebtedness affects a million people in France, according to the grouping of associations Croesus which fights against the fragile situations of the French.

Croesus presents itself as a network of associations whose aim is “to help and support people in situations of economic fragility by preserving them from isolation”. Created 23 years ago, it has 117 branches in France and 550 expert volunteers.

Who are the people in debt situation?

Who are the people in debt situation?

In a survey carried out in June 2017, Croesus looked into the case of the 30,000 people supported by the association.

The most salient fact that emerges from this study is that over-indebted people are mainly working people (56% of cases). Proof that the phenomenon does not “only affect people already in a fragile situation”. Retired people represent 24% of the over-indebted people followed by unemployed or disabled people (12). 8% of respondents are not in any of these categories.

Another element appears significant, the average amount of debt which rises to several thousand USD. In 37% of the cases, the debt was more than 45,000 USD, 23% less than 15,000 USD, 21% between 15,000 USD to 30,000 USD and 19% from 30,000 USD to 45,000 USD.

Key figures on over-indebtedness in France

Key figures on over-indebtedness in France

According to data from Croesus, over-indebtedness mainly affects the age group 35 and 54 ( 53%). 1 million households are currently in the process of over-indebtedness and there are 194,000 deposits of over-indebtedness files in 2016, or one file every 3 minutes. Alarming figures which reveal the difficulties of certain individuals in achieving their ends of months.

The grouping of associations offers concrete solutions to end over-indebtedness:

  • Create a national register of credits in France,
  • extend access to over-indebtedness procedures to self-employed workers and individual entrepreneurs.

But according to Croesus, it is important to focus on financial and budgetary education from college. In addition, he militates for the establishment of a national budget day in France. Pedagogy being at the heart of its approach.

Buy back credit to avoid too much credit?

Buy back credit to avoid too much credit?

Fortunately, there are solutions to balance your budget before being in debt. Especially when you have many credits in progress. Whether it is consumer loans or tax delays, it is possible to have debt bought back by a bank. The objective is to reduce the debt ratio by consolidating all the loans into one. This operation makes it possible to regain financial stability and even finance new projects.

It is nevertheless advisable to compare the offers since a buyout of credit will certainly decrease the debt ratio, allowing to have only one credit and a single rate, but the duration of the loan will be lengthened. The monthly payments to be paid will, however, be reduced. But the rate is an element not to be overlooked. Good Bank, a credit broker, supports borrowers from A to Z in this project. And comparing credit buy-backs is an essential step for those who want to find a balanced budget.

Good advice from Borrowing:
Before you start you can make credit repurchase simulations thanks to our online simulators, it’s simple and without obligation.