Faced with inflation, prices are not the only ones to ignite. Consumer loans are popular this year, with 11,791 loans taken out in the first quarter of 2022 compared to 10,841 in the same period last year according to the French Association of Financial Companies (ASF).
To save their purchasing power, withstand unforeseen events or even maintain their pre-inflation pace of life, French households therefore do not hesitate to resort to loans.
Cécile Roquelaure, director of studies, communication and operational marketing at Empruntis, reminds us that consumer loans are generally reserved for projects for which we do not have the necessary savings.
It can also be an expense for which you do not want to part with your savings, “either because it is allocated to a project or because it is precautionary savings to counter the hazards” .
The consumer credit can therefore be used to buy a car, change household appliances… “In any case, it is necessary to be vigilant as to your ability to repay, not getting into difficulty to repay is essential” , warns the specialist in matters related to the financing of individuals.
As a reminder, the amount of consumer credit varies between 200 and 75,000 euros, and the repayment period is systematically greater than three months.
So, is it really wise to resort to such a loan to deal with inflation? Elements of response with Cécile Roquelaure.
For Cécile Roquelaure, inflation can indeed be a valid reason for taking out a consumer loan “if it is taken from the angle that it puts a household in difficulty on its budget”. However, the budget management of the household must first be sound as a whole.
“Thus taking out a small consumer loan to stagger the payment of a large energy bill, for example, can be a good option, but it will however be necessary to find more sustainable solutions to manage your budget more efficiently”, continues the expert, recalling that credit is a boost and not a medium-term solution.
How to “succeed” in your consumer credit?
If you want to make a consumer loan to cope with inflation, choose the amount to borrow according to your needs and your borrowing capacity. “The duration will be adjusted accordingly. But it is possible today to access small envelopes (less than 3,000 euros) mainly by reserve principles, often more expensive than conventional consumer credit”, develops the specialist.
Regarding the duration of the loan, it again depends on the terms.
