A downward spiral that leads them to no longer be able to make ends meet. Every year, people accumulate arrears and are unable to repay loans. In an attempt to find a solution, some of them turn to the Banque de France. In 2022, 113,081 over-indebtedness files were thus filed, according to a study by the institution published on Monday.
One would have thought that the galloping inflation of recent months (5.9% between December 2021 and December 2022) would cause these figures to soar, but this is not the case: they are actually down 7% in 2021. “There is no particular alert for the moment, even if we remain vigilant”, indicates Hélène Arveiller, deputy director for individuals at the Banque de France. According to her, “the good health of the job market, the tariff shield on energy and lower consumption by the French in response to inflation” contributed to this slight decrease in the number of over-indebtedness files, even if there are still too many of them.
63% of them are between 25 and 64 years old
Although not all over-indebted people have recourse to the services of the Banque de France, the data it collects make it possible to draw up a composite portrait of the victims of this scourge. Several reasons lead them to such a galley: “Over-indebted people encounter financial difficulties because of their low resources or because they are victims of an accident in life: divorce, illness, unemployment…”, observes Hélène Arveiller. In fact, 61% of the households concerned have a median standard of living of 1,084 euros. And more than half are unemployed, unemployed, sick or disabled.
If one could believe that this problem concerns mainly seniors receiving a low pension, this is not the case. Two-thirds (63%) of them are between 25 and 64 years old. Women are more often affected (55%), and those who live alone with children represent nearly 20% of cases (while they represent only 10% of all households in France). Men are not spared, however, since 28% of over-indebted households are men living alone (16% among the French population).
18,024 euros, the median amount of debt
Regarding their level of indebtedness, it is not low, since the median amount reaches 18,024 euros. Debts that come from their difficulties in honoring their mortgages, repaying their consumer loans or paying their current expenses (rents, tax debts, energy or telephony debts, etc.)
It is clear that not all regions are affected by this scourge with the same intensity. Hauts-de-France (Eure, Pas-de-Calais, Somme, Aisne), Upper Normandy (Eure, Seine-Maritime), the Center (Creuse, Indre, Cher, Allier, Nièvre, Saône-et-Loire ), some parts of the Grand Est and New Aquitaine being very affected.
3414 to ask for help
Still, too many French people in such a mess are unaware that they can be helped. They can first call the number 3414, set up in October by the Banque de France. Since 1991, in each department, a commission can then examine their file. If it is accepted, the over-indebted person can benefit from several measures: the suspension of proceedings and late payment penalties, the capping of banking incident costs, etc. Or a reorganization or the total or partial cancellation of his debts when the situation is unlikely to improve over time. “In 2022, 57% of files benefited from total or partial debt cancellation, for an average amount of 20,224 euros”, indicates Hélène Arveiller.
But if they get their heads above water, it’s unfortunately not always final. Because 43% of people who filed an over-indebtedness file in 2022 were not doing so for the first time. Not sure either that the number of over-indebtedness files will not increase in 2023. In addition to the increase in consumer prices and energy prices, other factors could make the figures grow. Like the fact that autoentrepreneurs have only benefited from the over-indebtedness procedure since last May…