35th edition of the Observatoire des Crédits aux Ménages (OCM)(Household Loans Observatory) report: a clear impact of the economic situation on the holding of loans and the perception of households

According to the latest OCM report, which is based on a survey of 13,000 households¹, at the end of 2022, i.e. a very broad study base, the household loan holding rate has fallen for the fourth consecutive year, to 43.4%, its lowest level since the Observatory was created (1989). Every year for more than 30 years, this report has shed light on the situation of households with regard to loans, but also on their perception about their financial situation and their intentions to take out loans in the next 6 months.

The assessment of all of the households, whether or not they have loans, of their financial situation deteriorated again in 2022, reflecting a feeling of declining purchasing power. However, a very high proportion of households with loans (87.3%) say that their repayment costs are bearable. Intentions to take out new loans for the first half of 2023 are declining: 3.9% intend to take out a home loan (the lowest level in the last 25 years) and 3.6% consumer loans.

A further fall in consumer loans

In 2022, the holding of consumer loans weakened for the fifth consecutive year, regardless of the distribution network. The holding rate of these loans fell to 21.8% (from 24.9% in 2020), the lowest level since 1989. 19.7% of households hold loans to buy household goods, a car, a motorcycle or to pay for home improvements.

A high holding rate of home loans

The holding rate of home loans fell slightly again in 2022 (30.1% compared to 30.6% in 2021 and 31.4% in 2020), returning to its level of 2014-2017: the use of loans to finance the purchase of a primary residence persists, with the drop being explained by that of loans used to finance the acquisition of another home, another property or to carry out work on the home. Multiple factors are contributing to this state of affairs.

¹ The survey was conducted by mail in November 2022 with a representative sample of 13,000 households. 8,988 responded within the deadline (69.1%).