42% of Israeli households have overdrafts

Household debt
Household debt

42% of Israel's households had an overdraft in at least one of the past 12 months, while 29% of households had loans not related to mortgages, the Central Bureau of Statistics reports.

The Central Bureau of Statistics reported today the figures for household ownership of financial assets for 2018 data. It stated that 42% of Israel's households had reported having an overdraft in at least one of the past 12 months in the survey year, while 29% of households had loans not related to mortgages. 22% of households reported having an overdraft in 10 or more months in the past year. 26% of households with an overdraft were contacted by their bank at least once for exceeding the permitted credit in their account in the past year. Only 60,000 households, 5% of those that had an overdraft, reported that their bank had blocked their account at least once on the past year.

The figures show that 2.5% of all Israeli households, 69,400 households with 242,400 people, had no bank account. 13% of Arab households had no bank account, compared with less than 1% of Jewish households. 51% of Arab households reported that none of the household members had a credit card, compared with 11% of Jewish households.

Average loan of households: NIS 96,200

Asked about their mortgage debt, 27% of the respondents, 740,000 households with 2.96 million people living in them, said that they had a mortgage. 31% of Jewish households reported having a mortgage, compared with 4% of Arab households. 44% of the families with children and at least one child under 18 had a mortgage, and 27% of single-parent families had a mortgage.

789,800 households, 29% of the total, with 2.9 million people living in them, reported having non-mortgage loans of various types. The estimated average unpaid balance of non-mortgage loans was NIS 96,200. 92% of households with loans had bank loans, 7.5% had loans from credit card companies, 5% from insurance companies, and 5% from a private person or a private entity.

Almost two million households, 71% of the total, reported having savings of various kinds. At least 1.78 million households, 66% of the total, reported that at least one family members had pension fund savings. 51% of households reported that at least one family member had provident fund savings. 87% of those in the top 20% had pension fund, times as many as in the bottom 20%. 28% of households reported having savings that were neither pension fund nor provident fund savings. 38% of households in the top 20% had savings plans, 2.9 times as many as households in the bottom 20%.

Published by Globes, Israel business news - en.globes.co.il - on December 10, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Household debt
Household debt
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