Household Debt Back to Pre-Crisis Levels
December 6th, 2012
According to the latest data from the Bank of Spain, household debt fell again in October, bringing it back to the levels registered before the crisis, in 2007.
Specifically, household debt fell by 0.31% in the tenth month of the year, compared with the previous month, and totaled 838,072 million euros, its lowest level since May 2007.
Household debt fell 4.1% in October, year-on-year, mainly due to the decline in consumer credit, which fell by 4%, reaching 189,805 million euros.
Similarly, mortgage debt fell in October by 3.4% year-on-year, to stand at 645,440 million euros, and accounted for 77.01% of total household debt.
This ratio has been maintained for several years, since the fall in housing investment has paralleled that of the total debt, so that the amount that families spend on their homes takes up the majority of their savings.
Corporate Debt also Down
Corporate debt fell 0.5% in October compared to September and totaled 1.206 billion euros, the lowest level registered since November 2007.
In annual terms, corporate debt declined by 4.2% year-on-year, due mainly to the drop in resident credit institutions loans and off-balance sheet securitised loans, which fell by 6.8% to 784,088 million euros.
In contrast, El Mundo reported that debt on securities other than shares grew by 13% year-on-year in October, to 72,362 million euros, while foreign lending fell 1% compared to the same month of 2011, to 349,763 million euros.
- Household Debt at Lowest Level Since January 2008
- How the Debt Crisis Has Affected Spanish Business
- Spanish Property Crisis Traps Millions in Debt