Over-indebtedness: the number of files submitted to the Best Bank has decreased

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According to recent statistics published by the Best Bank, the number of over-indebtedness files declared admissible has decreased considerably since 2014.

According to figures published at the beginning of the year by the Best Bank, the annual number of over-indebtedness files deposited at the Best Bank fell by 13% between 2014 and 2017, ie around 30,000 files declared admissible less per year.

 

Over-indebtedness files: a decrease of 13% between 2014 and 2017

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Note that after reporting the status quo in the early 2000s, the number of over-indebtedness files had increased considerably between 2007 and 2011, in particular because of the financial crisis and unemployment. However, the trend has gradually reversed thanks to the entry into force of the Lagarde laws of 2010 and Hamon of 2015 which have strengthened the practices of lending institutions.

The sharp drop in interest rates on loans granted to individuals, the improvement in the economic situation and the numerous credit buy-back and renegotiation operations may also explain the drop in the annual number of over-indebtedness files filed with the Best Bank.

According to the Best Bank, the mass of consumer finance fell by a third between 2012 and 2017. That of revolving loans alone fell by more than 40%.

 

What is the profile of over-indebted people?

What is the profile of over-indebted people?

According to the Best Bank, around 180,000 cases of over-indebtedness were submitted last year and more than 166,000 were declared admissible, statistics down 4.7% in one year and 14, 4% since 2012.

However, even if the number of files declared admissible has declined for several years, over-indebtedness strikes more and more vulnerable people. In fact, almost 76% are tenants, compared to only 3.4% owners of their main residence. 36% of over-indebted people are alone (divorced or separated), 25% are single and 5.5% are widows.

In addition, more than a quarter of over-indebted people are unemployed and one in two over-indebted households has no capacity to repay. The figures also show that more than 8 in 10 over-indebted people have gross assets of less than 2,000 dollars.

In addition, it should be known that the households in situation of over- indebtedness burden under a burden of 7.2 billion dollars of debts. This amount is also down from the peak recorded in 2014.

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