Indebtedness of Swiss consumers

The types of debts

The debts that affect Swiss consumers are contracted mainly due to credits :

• leasings for vehicles
• consumer credit
• purchase by instalment
• debts to third parties

The indebtedness is also generate after default of payments and bank overdrafts or
after the non-payment of credit card balances.

The mortgage is not included in the category of debts. It’s because the payment of the mortgage debt is like the payment of a rent.

What are the causes of indebtedness in Switzerland?

The main reason that involves Swiss to contract consumer credit is the leasing to purchase a vehicle. This concerns 20 % of the population.

The tax arrears generate indebtedness for Swiss households. This touch 10.3 % of the population.

4.7 % of Swiss are living in household with one member subjected of the proceeding.

How to  to fight against indebtedness?

The legislator has established rules for the consumers to protect them against indebtedness. This leagal framework is defined by the federal law on consumer credit (FLCC).

The FLCC has by the way tightened since January 2016. The new framework forbids the advertisting for the purchase of goods considered unsustainable.

The legal framework ensures the reliability of financial institutions who offer credits. The consumers are then certain that a credit is granted only when their financial situation allows them to repay them.

Have a stable financial situation

Our partner Multicredit is able to offer you solutions for debt consolidation.

A debt consolidation is a solution that allows the decrease of monthly payments. With this option, it’s possible to better organize the management of its personal finances.

Source: Swiss Federal Statistical Office, figures for the year 2013.