Household debts going down, savings up (slightly)

Irish families now owe a combined €94.5 billion… and falling.

By Peter Bodkin Monday 8 Sep 2014, 4:06 PM

Sep 8th 2014, 4:06 PM 7,210 Views 13 Comments

https://jrnl.ie/1660862

Image: Piggy bank via Shutterstock

Image: Piggy bank via Shutterstock

HOUSEHOLD debt is going down as Irish families put their money in savings rather than taking out loans.

The latest figures from the Central Bank have revealed the total credit taken out by Irish private households stood at €94.5 billion at the end of June this year.

The total represented a quarterly drop of 0.8% and a fall of 3.6% for the year.

Home loans made up the vast majority of the total – €80.9 billion, compared to €13.6 billion in “other personal” finance.

But borrowers have dramatically cut their debts since the figures peaked in March 2008, when outstanding home loans hit €125 billion and personal borrowings were €24.6 billion.

Lending down, savings up (slightly)

Total deposits held in Irish private accounts were up for the first first quarter since September last year, at €85.9 billion in the end of June.

The figure has also been steadily falling since hitting a high of €95.2 billion in June 2009.

image (4) Irish households - credit and deposits Source: TheJournal.ie

READ: Lending to households fell by €500m last month

READ: Number of mortgage accounts in arrears FELL last quarter

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Peter Bodkin / Editor, Fora

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Household debts going down, savings up (slightly)