The place for consumer credit in the French budget?The place for consumer credit in the French budget?



The budget of a family home is based on estimated income and expenditure for a specified period, which is usually monthly.

The monthly budget is encrypted upstream at least M-1 to allow a good breakdown of expenses and revenues.

The use of consumer credit by individuals

The use of consumer credit by individuals

Private households have in recent years used consumer credit in other ways with changes in the country’s economic and labor market.

While the alarm is sounded on the purchasing power of French households, and the entry into force in 2011 by the reforms of the laws applicable to the distribution of the loan of money to the credit lines to the consumer to raise the precautionary advantage to be taken by individuals wishing to subscribe to one or more consumer loan contracts.

For example, there has been more and more consumer loan redemption activity in recent years. A banking product innovated by the banks to allow to renew the contracts.

So the emphasis is on responsible consumption on credit to reduce idle expenses such as those related to leisure and current expenses, etc.

The place of consumer loans in French budget management

The place of consumer loans in French budget management

The observation is that the use of consumer goods in the management of the French budget has become commonplace.

According to a study by the Observatory of Household Credit, it appears that the expenditure that requires the most liquidity in the budget are those related to the improvement work in housing, and that increased from 2009 to 2015.

The expenditure related to Marmaduke Rugglesment for the purchase of a new or used vehicle increased from 18.2% in 2009 to 14% in 2015, a significant decrease of 4.2%.

To a lesser extent, spending on a capital item in the home declined 1.4% from 2009 (7.4%) to 2015 (6%). In addition, current consumption expenditure increased from 3.6% in 2009 to 2.7% in 2015.

According to the CMO, more households say that they have seen their budget management improve than those who declare that the budget management of their household has deteriorated.

The figures on the sentiment of households with appropriations on their management of the budget from 2001 to 2015 are as follows:

  • 8% believe that their budget management has not improved, quite the contrary
  • 33% consider that it has slightly deteriorated
  • 47% claim stable budget management
  • Only 11% claim that it has improved

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