Unfortunately the situation of the Spanish families does not finish starting. Although the crisis theoretically begins to fade, this is not noticeable at all in salaries. Hiring is still very precarious and wages are getting lower. In fact, the distribution of wealth is truly worrying. Only 1% of the world population monopolizes 82% of the wealth.
In this scenario, Spanish families try to get ahead as well as possible. And the only way to get it is consumer credit. Some loans have become very fashionable due to the impossibility of being able to make ends meet on many occasions.
During 2017, banks have increased the granting of consumer loans. In fact, today it grants more of this type of credit than mortgage loans. Their eagerness to make more profits has led them to grant more of this type of loan with an interest rate of around 8%.
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This situation can be considered as truly alarming. Especially if we think about the numbers. In 2017 alone, the bank granted consumer loans worth 43,148 million USD. An amount that far exceeds the amount that has been used for the granting of mortgages.
According to the Infra Bank data, both Spanish companies and families continue to reduce debt little by little. However, it takes more and more time to achieve it. This reading is related to the increase in consumer credits. This type of loan does not stop growing gradually.
In fact, during 2017 alone, the granting of consumer loans grew by 18.5%. These loans are used in most cases to acquire appliances, a new vehicle or even take a vacation with the family.
Today, the granting of consumer loans far exceeds the capital dedicated to mortgage loans. While the first exceeded 43,000 million USD during the previous year, the second did not exceed 38,862 million USD.
Despite these figures, the granting of mortgage loans has also increased in recent years. However, growth has been much more sustained and less high than in the case of consumer loans.
Data according to the Infra Bank
Today, consumer loan debt continues to grow. In fact, during the last three years, it has gone from 162,000 million USD to 174,000 million.
These loans, however, are not just a recurring option for Spanish families. They are also for small and medium-sized companies seeking financing to be able to move forward.
Another interesting reading of these data offered by the Infra Bank is related to the amortization of debt on mortgage loans. In this case, unlike in the first, the depreciation increases considerably. In total, 2.4% less debt has been accumulated than in 2016.
What causes this growth in consumer credit
Undoubtedly, there are several factors that have triggered this type of credit
- The measures of the Cream Bank are very important when it comes to generating liquidity. Setting the interest rate at 0% and penalizing those banks that save their money has caused financial institutions to open their fists again.
- On the other hand, the economic needs in a society where wages are getting lower and jobs for less force to resort to this type of loan.