Payment cards and associated credits have been successful in France. On average, the French have almost 7 cards in their wallet. 97% of our fellow citizens have at least one payment card. All these payment facilities and associated credits contribute to household debt and even if they represent a convenience that should not be overlooked, they are also to be watched.
A payment facility that multiplies credits
Store payment cards are popular with users with a score of 8.2 / 10 against 7.5 / 10 for loyalty cards only. Used or not, payment facilities are an asset for store card holders.
They are considered a free credit, with the possibility of paying in several installments without interest rate. Generally of 3 months, the duration of these credits can also be longer, resulting in the assimilation of the payment facility to a conventional credit with all the associated rules: pre-contractual information sheet, loan contract offer and 14 day withdrawal.
A level of debt to watch
Some French households end up making excessive use of all these payment facilities which nevertheless represent sums to be reimbursed. These charges can add up to the point of increasing the budget of a household. Indeed, even if the credit is free, these are amounts to be reimbursed each month and good management requires keeping a close eye on all these commitments.
Remember to regularly calculate your debt ratio to find out the share of your budget that goes into loans, to calculate the capital remaining due and to view your amortization table. Nearly 3 out of 4 French people declare that they are forced to arbitrate in the management of their consumption, the food station or the holiday post can be reduced in favor of incompressible expenses.
If your debt level rises to the point where it threatens your financial health, don’t forget to study the possibility of buying back credit or debt restructuring that could allow you to start off from the good foot with lightened monthly loads.