The Financial Stability of French Households Is in Question

In 2023, France saw a significant increase in the number of cases of excessive debt, according to data provided by the Banque de France.
 

This rise, which represents an 8% increase compared to the previous year, raises questions about the financial stability of French households. With 121,617 cases filed last year, excessive debt continues to weigh heavily on many families across the country.
However, despite this increase, the overall number of applications remains 15% lower than in 2019, before the major impact of the health crisis. This data suggests that even though the problem is worsening, it has not yet reached the levels observed before the pandemic.
 

Over a ten-year period, cases of excessive debt have declined by an average of 6% per year, representing an overall decrease of 50% since 2014. This downward trend was primarily attributable to factors such as stricter regulations on access to consumer credit, greater awareness among borrowers, and lower unemployment.
Nevertheless, despite these efforts to contain the problem, the total outstanding debt held by over-indebted households remained at 4.2 billion euros in 2023, indicating stagnation compared to the previous year but a 27% decrease compared to 2019. This debt, excluding mortgages, stands at a median of 16,898 euros per household, with an average debt of 30,429 euros. These figures highlight the heavy financial burden that many households must bear.
 

The profiles of people with excessive debt remain relatively stable, with a predominance of people living alone, single-parent families, divorced or separated individuals, and job seekers. Employees and manual laborers also make up a significant portion of this population in debt, as do renters and low-income households, 69% of whom have a standard of living below the net monthly minimum wage.
 

Geographically speaking, certain regions of France appear to be more affected by household debt than others. The regions of Hauts-de-France, Normandy, Bourgogne-Franche-Comté, and Centre-Val de Loire have higher rates of debt relief applications, underscoring the need for targeted measures in these areas to help people facing financial difficulties.