French debt reaches historic high

date
02/08/2025
According to the website of the French magazine "Point" reported on July 26th, consumer credit, mortgage... French people's debt levels have reached unprecedented levels. Since 2023, the phenomenon of excessive debt has continued to worsen, and the reasons for the sharp increase have sparked deep reflection. Although the inflation rate in France is expected to continue to slow down by 2025, is it becoming increasingly difficult for the French to repay their loans? The French Financial Companies Association found in the second quarter of 2025 that the number of individual borrowers applying for "consumer loan repayment extension or rearrangement" has seen a "slight increase." The organization further pointed out that, apart from the housing sector, "the economic slowdown trend continues to exist and is continuously evident through various risk indicators." According to data from the Bank of France, the outstanding balance of consumer credit in France in May 2025 reached 214.1 billion euros, with an annual growth rate of 3.6%. In comparison, this number was almost half of what it is now twenty years ago.