Families reduce their debt by 30,000 million euros

The debt of Spanish households falls by 30,000 million euros, according to data from the Bank of Spain. During the last year, Spanish families reduced their loans by 3.7 percent in the last year, to 2006 levels.

The decline in family debt continues

The end of the economic crisis is visible in family spending. The trend to reduce the debt remains in force, according to data from the Bank of Spain. The figure already accumulates 22 consecutive months below the 800,000 million. Since August 2006, one year before the first signs of the economic crisis, there was not a level of indebtedness of families that was so low.

Thus, the debt of Spanish families reached 733,239 million euros in July, almost 30,000 million less than a year ago, 9,000 euros less than a month ago, and 175,000 euros less than the maximum reached in December 2008 over and above 908,000 million. In percentage data, this means that the decline initiated at the end of 2014 continues with a fall of 3.7% per year, 1.2% per month and 19.3% from that maximum recorded in 2008.

Causes of debt reduction for families

Basically, the causes that have held back the debt of the families are the reduction of the credits for the acquisition of housing and the fall of the loans destined for consumption. However, 78% of these loans are mortgages and this debt reached a total of 571,791 million in July, which makes it the lowest figure since November 2006. In the last year it has decreased by 4.7% less. which is 3,000 million less than the previous month, that is, 0.44% less.

The rest of the families' debt, which amounts to 161,447 million, corresponds mainly to credits for consumption. Although in the last year the decline has been 0.1 percent, a not very significant decrease, it is striking that in July the fall was 3.8 percent compared to the previous month, that is, 6,000 million less.

Marisol Nuevo Espín

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