The debt level in Europe is stable
Between 2015 and 2016, the level of indebtedness of Europeans remained stable. 1 in 2 has personal debts (bank overdraft, consumer credit, student loan, payment card). Home loans are not counted. In addition, 20% of respondents have taken out consumer credit.
In terms of consumption habits, the French are the most adept at bank overdraft (18% in France compared to 12% for other Europeans). According to the Panorabanques.com comparator , 68% even want to benefit from it …
For 1/3 of the French this overdraft is 500 USD, and for 1/4 it is 1500 USD. Significant sums therefore. However, 25% exceed the authorized amount once a month while 39% never exceed it. “Everyone is affected, whatever the level of income. The average bill is 60 USD but for the most addicted, it can exceed 200 USD.
Restructuring debts with a loan buyout
Debt restructuring, or buying back credit, is one way to lower the borrower’s debt level. Several consumer credits (car credit, personal loan, revolving credit), home loan , bank overdraft or tax arrears can be combined. There are various reasons why the borrower may want to redeem his credits: to reduce his monthly payments, to finance a new project, etc. A good practice to remember is to compare online credit buy offers to get the best deal.
Real estate rates: a spectacular drop in Europe
Home loan rates have never been lower in Europe . They were even divided by 2 or even 3 between 2008 and 2016, according to a study by Credit Poncier on the purchasing power of households. “The drop in mortgage rates has been dramatic. In Spain, Portugal, Germany and France, countries which show the largest decreases (above 60%), the interest charge on a mortgage has been divided by three ” , notes Credit Poncier in his investigation.
While property rates are historically low, “this situation has had a real impact on the morale of French savers” . 19% are happy with this decline while 39% say they are worried or frustrated, notes the ING study. In fact, 41% save less due to low interest rates while 56% have not changed their habits. Of course, there are those who can save (71% of respondents) but 29% of Europeans cannot make ends meet. Respondents who manage to put aside a little, however, have no more than 3 months of saved income (36%).