Christmas Are The French Ready To Give Credit?
This year again, the French do not intend to ignore the end of the year celebrations and many of them use credit. Read more
It’s almost the end of the year with its inevitable and expensive festive dates. It is true that Christmas for children as for adults is synonymous with gifts, decoration, parties, meals, fun, holidays with family or friends. Often the question of the financing of the expenses is rightly raised in concrete themes. What to spend? How to spend? Should you make a consumption credit or use your savings? The proposals of the banks are numerous and give food for thought as the end of year holiday expenses put a real pressure on the budgets.
French and end-of-year expenses
This year again, the French do not intend to ignore the end of year celebrations. In total, 67 billion euros are planned for traditional spending, up 1.5% over the previous year. Households provide on average 350 € for gifts (clothing, consumer electronics, toys …), 185 € for food and 50 € in entertainment all for a budget of about 600 €. These expenses are financed by savings or credit.
According to a survey published by europe1 in 2014, 36% of households drew on their savings to finance their expenses. Most of those who rely on their savings are preparing for it at the beginning of the year. But when you know, according to the same survey that more than a third of French people are let go despite their financial situation at Christmas, we understand why more than 10% of households use credit to finance or close their budget. As the financial influence of the crisis is in sharp decline, the number of French people ready to make a loan for Christmas and the end of the year is growing.
With the constant increase in holiday spending, financial institutions are seeing a decrease in credit restructuring requests at the end of October and a rise in early January. The majority of Christmas shopping is done by anticipation in November or early December. If necessary, the financial organizations, with promotional offers, offer several types of credit well adapted and at very attractive rates.
Loans offered on the occasion of the end-of-year celebrations
The loan often prized by individuals is consumer credit. The current growth rate of this credit is probably not unrelated to this craze. Consumer credit includes revolving credit, store credit, Christmas credit, personal credit, assigned credit, bank overdrafts, lease with option to purchase.
In France, the consumer loan is capped at € 75,000. It can be issued to the borrower in the form of capital, revolving credit arranged in his account or loyalty card. During holidays, rates can range from 2.2% to 3.6% and over a minimum of 12 months.
Some precautions to make a credit
The loan is not synonymous with improvidence. This is why it should be well planned to avoid any risk of over-indebtedness. Take with caution the revolving credits whose cost may be more expensive than other credits. Remember to make a balance sheet and especially a budget. This budget can be based on a trade-off between desired expenses and reasonable expenses so as to set targets to be achieved.
Christmas is very important for the French who are at least a third to drop the purse to please and please the children and loved ones on this occasion. They are even 34% to save to finance this holiday, but the increase of the expenses this year again entails an increasing recourse to the credit. top