Overindebted households in France

In 2025, France had 150,000 overindebted households, a growing problem affecting all age groups. Crésus, an organization based in Niort, Deux-Sèvres, helps these households find sustainable solutions, such as preparing debt relief applications with the Bank of France or obtaining microcredits.

Crésus's approach and client experience

The organization's office, located in the Maison des Associations, maintains a discreet environment, aiming to make clients feel comfortable and confident. According to François Faure, a volunteer manager of the Deux-Sèvres branch, people come to Crésus reluctantly, often feeling ashamed.

Support and growth in the region

Christine, 64, one of the 70 households supported by the branch in 2025, confirms that the process is not easy, as individuals in this situation often feel unprideful. The number of households supported by the branch has increased by 30% in the department, compared to a 10% increase nationally since 2020.

Definition and causes of overindebtedness

Overindebtedness is declared when individuals can no longer face their debts, including loans, rent, and taxes. Christine's debts include energy bills and consumer credits. She and her husband, who live below the poverty threshold as defined by INSEE, have a monthly income of 1,700 euros. After paying rent, food, insurance, and electricity, little remains for the family.

Root causes and diverse impacts

François Faure explains that the main cause of overindebtedness is not an excess of credit but of poverty. He notes that 62% of overindebted individuals live below the poverty threshold. Common causes include life accidents such as divorce, death of a spouse, job loss, or illness. Overindebtedness also affects affluent households, with 3 of the 70 households followed by Crésus having a good standard of living but burdened with significant renewable credits.

Christine's personal journey

Christine and her husband faced financial distress after retirement, with installments and interest becoming impossible to pay. They were caught in a trap with bailiffs and debt collection companies, leading them to request the Bank of France in October 2025.

The debt relief process in France

In France, overindebted individuals can apply for financial solutions through the Bank of France by submitting a detailed document with supporting documents. However, the process is complicated and often involves administrative difficulties. Christine initially attempted the procedure alone but made mistakes, leading to her file being rejected. She then sought help from Crésus, which provided concrete and kind assistance.

Crésus's role in the application process

Crésus accompanies households step by step in processing the file, which requires four to six months of interviews. Many applicants are "administrophobic" and face difficulties with computer use. François Faure mentions individuals who come with sealed envelopes, thinking the situation will improve on its own. However, legal actions are suspended during the procedure.

Outcomes and solutions

Once the application is complete, the overindebtedness commission assesses its admissibility. Approximately 90% of files are declared admissible. Solutions may include a five-year repayment plan for tenants, up to twenty-five years for homeowners, partial or total debt cancellation, or a two-year moratorium. Christine and her husband had their debt of 34,906 euros canceled entirely.

Challenges and future plans

François Faure's main challenge is attracting overindebted individuals to the office, as they often do not come spontaneously. He plans to collaborate with local structures such as the Departmental Solidarity House and hospital social workers. He also aims to recruit more volunteers, especially those who can accompany beneficiaries with repayment plans. He has started offering microcredits to Crésus beneficiaries since February 2026.

Relapse and long-term adjustments

Relapses are possible, as seen in Christine's case, where she took out new credits after the banking ban was lifted. She now avoids credits, prioritizing essential expenses and using a cheaper electricity supplier. Despite sacrifices, Christine enjoys a new feeling of serenity.

Historical trends and legal context

Overindebtedness declined between 2015 and 2020 due to the Lagarde law, but increased with the Covid crisis and subsequent economic challenges. Conditions to file a debt relief application include residing in France or being of French nationality with debts to creditors in France, having only non-professional debts, and being unable to face all expenses and debts with income.

Legal protections during the process

At the admissibility of the file, debts are frozen until processing is complete. During this period, creditors must suspend legal actions. The Bank of France contacts each creditor to determine the exact amount owed. Approximately 10% of overindebtedness files are rejected, often involving artisans, traders, or farmers who require judicial liquidation.

Typical debt patterns and economic factors

Unpaid bills typically begin with energy bills, followed by the canteen, taxes, car loans, and finally, rent. Electricity debts have increased significantly due to the liberalization of EDF and the war in Ukraine, affecting 68% of overindebted households.

Crésus's microcredit program

Crésus has developed a microcredit program, offering financial aid up to 8,000 euros for individuals banned from banking with social or professional integration projects. The repayment plan is complex, requiring detailed budgetary accompaniment, which Crésus lacks resources for.

Sustainability and historical reference

The sustainability of Crésus depends on private assistance and voluntary contributions from supported beneficiaries. The expression "Rich as Crésus" originates from a king in the 5th century BC known for his wealth and generosity.