L’endettement des ménages

Gastón Giordana and Michael Ziegelmeyer

BCL Bulletin Analyses, 2022, vol. 2022-2, 45-48

Abstract: High inflation and rising interest rates could increase financial vulnerability among Luxembourg households. This analysis uses micro-data on individual households from the Luxembourg Household Finance and Consumption Survey (HFCS) to calculate standard debt burden indicators and simulates their evolution through the end of 2023 based on BCL macroeconomic projections. According to several indicators, the share of financially vulnerable households increased from 2018 to 2021. Our simulations suggest this trend continued in 2022 and 2023 for those indicators that focus on the risk of delayed payment, although it may have reverted for other indicators that focus on the level of debt. Risk is concentrated among low-income households, but indebted households in this group only account for 11% of the number of mortgage contracts and 9% of aggregate household sector debt.

Keywords: Household debt; financial vulnerability; interest rates; micro-simulation (search for similar items in EconPapers)
JEL-codes: E44 E47 G21 G28 G51 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:bcl:bclban:bclanalyse20222a5

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