When the family or work context changes, debts can accumulate with deadlines that are difficult to honor, sometimes leading to over-indebtedness. A difficult situation for a household and consequences that are not neutral on the daily life of the home. However, we note that the over-indebtedness is down in 2018, for the 6th year in a row .
Over-indebtedness: a difficult situation
Often linked to the vagaries of life such as unemployment or a divorce that weaken income, overindebtedness is defined by the consumer code as “the manifest impossibility for the debtor in good faith to face all of his debts unprofessional due or due “. If different credits to repay are added to a precarious financial situation, the over-indebtedness is generally proven. One of the solutions is to file an over-indebtedness file with the Francia bank.
Over-indebtedness decreased in 2018
According to the Francia bank typological survey, the year 2018 included 91,899 new overindebtedness situations (primode deposits), a level close to that of 1990, and a total of 162,936 debt distress situations recorded for 2018. A situation out of five debt distress today does not include any debt related to a consumer credit and real estate debt appears in 14.5% of cases. The current account arrears meanwhile appear in 81% of the cases. The share of consumer debt in total household debt has fallen by more than 20 points since 2011 (from 58.2% to 37.8% of the total).
When credits accumulate, it is possible to group them
When a household has taken out several loans and is in a situation where monthly loan payments leave insufficient living space, it is possible to spread the debt before any situation of over-indebtedness. The credit redemption makes it possible to group all the credits into one with a single monthly payment. The duration of the new loan is lengthened and its final cost is greater. At the same time, the operation makes it possible to benefit from a reduced monthly payment compared to the total of the old deadlines. The purchase of credit also allows the integration of personal debts (rent arrears, taxes) and the amount of bank overdraft which is considered a consumer credit. An operation that allows you to find a breath in his budget.