The French are wary of consumer credit. Between 2010 and 2011, the figures of the French Association of Financial Companies show a decrease of 7.8% in the production of consumer credit.
The Observatory of Household Credit (OCM) said that for the first half of 2012, only 3.6% of French people are considering taking out consumer credit.
At the same time, the share of French consumers with consumer credit remained stable between 2010 and 2011, at 30.1% and 30.2%, according to the same sources.
Less credits for current expenses and more for goods purchases
According to the CMO, in 2007, 9.6% of households contracted loans for leisure or consumer spending, they are only 5.8% in 2011.
The French prefer credits for the purchase of goods, such as cars, motorcycles, home equipment or to finance work in their home.
A survey of Cetelem observatory, in January 2011, revealed that to improve or maintain their standard of living on a daily basis, 76% of French people prefer to reduce their expenses.
Credit is losing popularity!
The end of revolving credit?
The revolving credit is a reserve of money made available to the borrower. The sum is renewed as and when repayment.
Since 2010, in order to stop any ambiguity on this credit, the terms revolving and permanent credit are no longer allowed. The nature of the loan was not always clear to subscribers.
In two years, the volume of revolving loans has dropped by 50%. The French have become aware of the risks of insolvency.
The revolving credit rate is the highest of consumer credit. For an amount greater than € 6,000, the usury rate (maximum interest rate) applicable in 2012 is 10.6% for a personal loan and 15.78% for a revolving loan.
A punk of public policy, the Lagarde law of 2011 aimed, among other things, to regulate this form of credit (fees applicable in the event of default, limitation of the maximum repayment period, etc.), contributed significantly to its decline. .
Expanded credit for young people in precarious situations
Since the end of 2011, the Cetelem group has opened its consumer loans to young people between the ages of 18 and 30 on fixed-term or temporary contracts, until then dismissed by banks and credit institutions.
The loans will still be subject to constraints: higher interest rate and restriction on the purchase of consumer goods.
On the other hand, the amount and duration of the loans correspond to those of standard depreciable loans.
Credit cards at stores losing speed
Many department stores or superstores themselves offer their customers to pay their purchases on credit, without going through a bank. This is the case for KG with its KG FAMILY card, or the BUT store and its But Aurore card.
In 2011, 6.3% of households had a consumer credit “card”, that is to say subscribed to a store, against 12.2% in 2005, according to the CMO. The share of bank credit remained stable in 2011, at 20.4%.
The Lagarde Act of 2011 strengthened the regulation of consumer credit, including:
- the credit function associated with store cards is no longer systematic
- organizations must be transparent about proposed loans
- obligation to check the creditworthiness of the borrower
These restrictions have favored the banks, more able to cope with them, to the detriment of the stores.
Union loan: an alternative consumer credit
Set up in 2011, PU Loan is the leading personal credit platform, 100% on the internet. The concept is simple: use the liquidity of individuals who are paid at attractive rates, to finance solvent French households.
The site ensures the good relationship between the parties and manages the provision of funds for borrowers. It also takes care of withdrawals and refunds, including recovery for unpaid bills.
Take the example of a € 10,000 car loan over 60 months.
- fixed annual percentage rate of charge (APR): 8.49%
- monthly payments: 181,45 €
- total cost of credit: 1977 €
- Fixed APR: 7.40%
- monthly payments: 175,31 €
- total cost of € 1698.95
Bank credit is no longer a necessary way to finance a project. Learn about all possible alternatives and compare!