1 in 4 French people use consumer credit. For 2019, this type of credit recorded an increase of 5.8%, with an overall outstanding amount of $ 224 billion. The personal loan remains at the top. However, other consumer loan formulas are emerging and gaining ground, like leasing.
1/3 of consumer loans taken out in the form of a personal loan. Personal loans remain the most requested consumer loan, with a 30% share of the market. Its flexibility and simplicity make the success of the personal loan. It is a loan without proof of employment. The borrower is entirely free to use the funds he receives from the bank. He can use the money to buy a vehicle, to finance a trip, to pay his bills. He is not accountable. The personal loan constitutes the loan without proof par excellence.
Revolving credit is losing ground
Revolving credit provides the borrower with a line of credit that he can use as he pleases. The loan is fully and automatically replenished when the borrower finishes repaying the loan. Considered as the most accessible consumer loan, revolving credit nevertheless exposes the borrower to a real risk of over-indebtedness. On the other hand, it displays the highest interest rates. All these conditions discourage borrowers who prefer to turn more, either to the personal loan or to the affected credits.
Leasing breaks free from the automotive market
Until now, leasing has mainly concerned the automotive market. It is a long-term rental contract replacing the traditional sale. Leasing offers many advantages. It allows in particular to acquire a vehicle at a ridiculous price, while benefiting from numerous guarantees and services. Car leasing represented around 37% of sales in 2019. The success of car leasing has gradually pushed other sectors to adopt this rental sale system. From now on, you can take out a lease to acquire a washing machine, a vacuum cleaner and many other consumer products.
Over $ 220 billion in total assets
All types of loans combined, consumer credit recorded total outstandings of $ 224 billion in 2019. The figure is still far from real estate outstandings, which stand at more than 1,000 billion. Nevertheless, the consumer loan recorded a clear growth of 5.8%. Social demonstrations at the end of the year somewhat slowed its progress. In December, the banks lent around $ 6.7 billion in the form of consumer credit.
Consumer credit is everyday credit, the one that finances everyday life. It tends to become essential. However, do not take a blind consumer loan. Use services like the comparator or the credit simulator beforehand. You can especially rely on the expertise of a broker / This credit expert helps you find and choose the most suitable and suitable offer.