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Debt in Switzerland: View on the situation

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Switzerland is renowned as a rich country without financial problem. Their citizen are notoriously thrifty. In such context, debt in Switzerland is often a taboo subject. In this article we are proposing to you some explanations as well as a point on the real situation.

Mortgage debt

As pointed a recent article on, mortgage debt in Switzerland have reach in 2012 its higher level of 614,244 milliards of francs either… 103.6% of annual GDP! This impressive number don’t have to be interpreted as alarmist. Indeed, mortgage debt is not an indicator of financial difficulty. On the opposite, being an owner throughout a mortgage indicates more a good health. Indeed, swiss citizen are benefiting of the lowest mortgage interest rate of the history, these last years, for building their houses.

Debt in Switzerland linked to the loans

If mortgage loans are not usually considered like an indicator for a bad financial situation (building a house is often considered reflecting a good financial situation), what about the borrowing linked to personal loans? Surprisingly, the statistics (as VSKF) show that in 2012, there has been almost 161’000 contracts of consumer loans for an amount of almost 7.7 milliards francs! So, is that an indicator of bad financial health? Fortunately, the swiss law on the indebtedness allows to generally avoid financial difficulties linked to the borrowing. However, despite the existing measures, the indebtedness in Switzerland exists, even if is somewhat rare. Furthermore, institutions are proposing help in case of debt.

The leasing case

Surprisingly, in a full car crisis Europe, Switzerland is doing fine. The year of 2012 has even been considerate as the “second better year of the car in all the time” ( always as VSFK). Indeed, as the ZEK points, outstanding contracts reached almost 8 millard of francs in 2012. Between contracts of loan and leasing, the debt in Switzerland reaches almost 16 milliards of francs!

Debt in Switzerland: indicator of a bad financials health?

If the numbers show that the Swiss are willingly use borrowing (mortgage, loan, leasing) for financing their projects, they show as well that the majority of this borrow are in majority of case “responsible”. Swiss people borrows a lot of money, but have usually the finance for reimbursing their debts. We can conclude that the debt in Switzerland reflects the good health of the country.

To go futher

Are you looking for some borrowing solution? We can propose you as well some interesting links on the subject:

  • Loan mortgage : you could easily obtain a free offer by requesting towards our partner PrestaFlex-Service. Ask for a request!
  • Loan : you will have the possibility via Creditloan to do a quick and easy request of loan as for receiving in return an offer for a credit without obligation.