Household income and wealth2013 Edition

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Paru le : 24/04/2013
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Household private indebtedness since 2010

Pierre Lamarche, Laurianne Salembier

Since 2010, 46% of households have been indebted for private reasons, i.e. with no link to professional activity, whether to acquire their main residence, another property or else consumer goods. The profile of indebted households varied greatly depending on the reason for the debt. Households indebted for the family home were usually of intermediate age (30 to 59 years) and enjoyed a fairly high standard of living; those indebted for consumer reasons tended to have a low standard of living and poor finances and were younger. The profile of indebted households arose from the conjunction of two mechanisms: the desire of the household to take on debt and the fact that it can have access to credit. Households with the highest standard of living were more inclined to consider taking on debt and were turned down less; those with liquid assets were turned down less but also found themselves turning down their credit to a lesser extent. The amount owed by indebted households on a private basis stood on average at 54,000 euros and they repaid 621 euros per month for this borrowing. For 18% of them, the sums repaid exceeded 30% of their income. They were often indebted for the purchase of a property. 9% of households must repay greater sums than the total value of their assets. They were indebted mostly for consumer reasons, were younger than households indebted to buy a property, and had far less wealth.

Insee Références
Paru le : 24/04/2013