French household debt has reached a record high

Household over-indebtedness is a major concern for contemporary economies and societies, directly affecting the quality of life of individuals and overall financial stability. In 2023, France observed a significant evolution of this issue, highlighting both persistent challenges and encouraging signs of improvement.

Evolution of the number of over-indebtedness cases

In 2023, The number of additional debt files filed with the Banque de France increased by 8%. Compared to the previous year, 121,617 files have been reached. The increase is more marked in the second half (+10%) than in the first (+5%), although the total number of files is 15% lower than in 2019, the pre-pandemic reference year. Over the past decade, deposits have declined by an average of 6% annually, largely as a result of deregulation of consumer credit and a drop in unemployment.

Aggregate Debt Stabilization

The more indebted households are, the more total debt they have 4.2 billion euros in 2023, a stable amount compared to the previous year but down 27% compared to 2019. Excluding real estate, the average debt is 16,898 euros, while the average debt reaches 30,429 euros. The debt structure is changing little, with the share of consumer debt increasing and real estate debt decreasing.

Profile of Over-indebted Households

Over-indebted populations present certain characteristics, dominated by People living alone (52%)The 25-64 years (83%)The Single-parent families (20%)The People looking for work (25%), as well as by the majority of employees and workers (52%). These households are mainly renters or renters (88%) and live below the poverty line (58%), with 69% living below the monthly net minimum wage.

Procedures for submitting files

In 2023, 69% of files were delivered by post, 17% online And 14% over the counter. More than half of indebted households chose to receive support from a social worker, highlighting the importance of assistance in the filing process.

Banque de France’s financial inclusion mission

The Banque de France plays a crucial role in financial inclusion, almost informing or supporting it 5.7 million people in 2023

. Faced with the rise in over-indebted deposits, the organization is strengthening its commitment to support the most vulnerable citizens by making its financial inclusion services more visible, accessible and effective.

Hélène Arweiler, Deputy Director of Personnel Services at the Banque de France, reaffirms this desire for the support needed in the fight against excessive debt and the promotion of a more financially inclusive society.

If 2023 shows an increase in more debt cases, it also shows the responsiveness and adaptability of the support systems, which are necessary to reduce the effects of this problem on French families. Aggregate debt stabilization and increased commitment to financial inclusion are encouraging signs for the future.