Household Debt Fell by 3.6% in November

Household debt fell again year-on-year in November, by 3.6%, to 840,792 million euros, which put it at levels recorded in 2007, before the crisis, according to the Bank of Spain.

In relation to the previous month, family debt rose by 0.31%, marking the second monthly increase of the year after that recorded in June.

The household debt was particularly affected year-on-year by the decline in consumer credit, which fell by 4.1% to stand at 194,428 million euros.

Similarly, mortgage debt fell by 3.5% in November year-on-year, and stood at 643,426 million euros, representing 76.5% of total household debt.

This ratio has remained the same 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 home occupies the majority of their savings.

Meanwhile, corporate debt fell by 4.6% in November year-on-year, and totalled 1,198 billion euros, its lowest level since November 2007, while in relation to October it registered a decrease of 0.4%.

The inter-annual drop in this balance is explained by the decrease in loans granted by resident credit institutions and off-balance securitised loans, which fell by 7.2% to 779,014 million euros.

In contrast, according to Europa Press, securities other than shares grew by 13.3% in November, year- on-year, to 73,017 million euros, while foreign lending fell by 1.6% over the same month of 2011, to 346,372 million euros.