Today, consumers seem to be borrowing more and more. They see credit as a means to access all their needs and the realization of their dreams and their projects: the purchase of a sports car, a house or the construction of a new terrace.
The spiral of debt
The problem is the snowball effect: the loans follow each other and accumulate, without being able to be managed, thus causing the overindebtedness of the consumer.
It is therefore not surprising that more and more people seem to be entering the spiral of indebtedness. In June 2016, there were more than 360,000 people who could no longer repay their debts. A year earlier, there were “only” 352,000.
To protect you from the effects of the spiral of debt
To protect you from the effects of the spiral of debt and to illustrate this problem, we made an infographic based on the story of Florian.
The latter is about losing his house as well as his car, because of some bad decisions. It thus faces many debts and contracts new ones to repay everything (personal loans, line of credit, credit cards, etc). This drives him into the spiral of debt.
The question is: how to avoid this? At first, it is natural for banks to realize the snowball effect of your debts. Indeed, the latter through the Central Credit to Individuals have access to all your loans. Moreover, it is not wise to borrow to get out of debt.
Nobody should be allowed to accumulate debts
It is only by buying only what you have the opportunity to pay yourself that you will be able to properly manage your financial situation. Make the distinction between the necessary and the pleasant. Moreover, you can save a lot by limiting yourself to what you can afford.
If you know how to manage your finances in a healthy way, do not hesitate to compare the financial institutions to find the loan that you need!