Israelis had smaller and fewer overdrafts in August

Fewer Israelis had smaller overdrafts in August 2021 compared with July, according to the "Minus Index" compiled by "Globes," First Digital Bank and the MyFinanda app, based on data from 2,000 of the app's users.

In August 2021 the average overdraft for an Israeli family was NIS 11,216, 2.3% smaller than in July. Also in August the number of Israeli households with an overdraft fell to 28.7% compared with 30.6% in July 2021 and 31.2% in August 2020.

These figures are surprising because traditionally August is a month when more people have bigger overdrafts with children out of school and needing entertainment and Israelis taking summer vacations. The assumption is that Covid-19 and the Green passport requirements and other restrictions prevented many Israelis from taking vacations or going to places of entertainment. In August 6.6% less was spent on eating out and 12% less on vacations and trips, compared with July.

The sharpest fall in overdrafts was in the 3-6 socio-economic brackets where the percentage of families in overdraft fell to 25.2% compared with 31.2% in July. But those who were in the red increased their overdraft by an average of NIS 500 to NIS 8,980 in August compared with July. In the higher socio-economic brackets (7-10) the average overdraft in August was NIS 15,515, with 36% of households in these brackets in overdraft.

Published by Globes, Israel business news - en.globes.co.il - on September 14, 2021