Belgians borrow most often for home and car

It is known that Belgians generally do not have so many problems with borrowing money.

At the end of July of this year was announced by the Central for Loans to Private Individuals that just 6.3 million Belgians in Belgium have at least one credit.

In addition, it also came to light that many Belgians also have multiple loans. In total there were just 11.2 million in outstanding loans. In particular, loans are made for the purchase of a home and a car, although borrowing is increasingly being done for less ‘necessary’ matters.  

  3.1 million current residential loans  

The most recent figures indicate that at that time there were 3.1 million in current housing loans. In addition, there would also be 8.1 million of so-called consumer credits. These latter credits are becoming increasingly popular and are used to finance less substantial purchases. Moreover, when the range of consumer credits is viewed closer, it can also be established that different forms exist. The best known, however, is still the regular consumer credit on payment. Of this, about 2 million would exist.  

  A consumer credit can now be closed in several ways. When this is concluded with a traditional bank, this means in practice that a certain amount of money is paid out to the borrower, who can then spend it at his own discretion. On the other hand, it is also possible that the credit broker is also the seller of the article in question. The latter is the case, for example, when a large, expensive television is purchased on payment at a retail chain. Of the latter so-called ‘sales on payment’ there would currently be about 195,000.  

 Credit opening by far the most popular consumer credit  

If the consumer credit figures are looked at closely, it can also be immediately established that the so-called ‘credit opening’ is the most popular consumer credit. At the end of July there were about 5.9 million contracts of this type of loan. That this type of consumer credit is so popular is undoubtedly due in part to the flexible character it possesses. The credit card then makes it possible to go ‘in the red’ on the current account that is linked to the card in question. This of course seems very simple, but here too certain costs or interest are charged.  

  What exactly are Belgians borrowing for?  

When evaluating the credit institution’s figures, it immediately becomes clear how many outstanding credits there are in our country, but it does mean that nothing is really said about the purpose for which people have taken out the credits in question. For this reason, similar research was conducted earlier this year by Wikifin, the educational arm of the financial watchdog FSMA. The research actually consisted of a poll that was organized among a thousand Belgians according to their credit behavior. One of the questions related in particular to the type of loan taken out by the persons in question.  

  The research revealed that the residential loan is by far the most popular form of credit. 49 percent of the respondents had therefore borrowed money for the purchase of a home. The car loan takes up an equally important 37 percent. In addition, it became apparent that more and more people are also choosing to borrow for energy-saving investments (around 6 percent), as well as buying new furniture and even an expensive television (6 and 5 percent). It is also striking that 1 percent had already taken out a loan to organize a large and expensive party. 2 percent would also have borrowed for buying an engine. In order to be able to pay the taxes, it is increasingly being decided to take out a loan.