Everywhere in France, and especially in the big cities, mobility is becoming a major problem: permanent traffic jams, constantly increasing budgets (vehicle prices at purchase and insurance prices), taking increasingly into account ecological issues. It may be time to change your daily mobility in depth. And to do this, consumer credit can help you!
Act on your mobility with a consumer credit
Mobility has a cost, and it is not necessarily easy to calculate given the many criteria involved. If we take all the objective data – purchase price, prices of insurance products and subscriptions in transport, time lost in traffic jams and because of strikes, etc. – we see that this cost, as difficult as it is to assess, is very high.
Take for example the Ile-de-France region, which alone concentrates a large part of mobility issues in the country, with millions of people who travel from one point to another in motorized vehicles or by public transport. Here are some of the obstacles to mobility:
- Traffic jams. They increased by 9.3% in the Paris region in 2015. Between 7:30 am and 8:40 am, getting to Paris by car is an Olympic feat. The time cost is enormous.
- The parking. In Paris, outdoor spaces are becoming as rare as oases in the middle of the desert, in particular due to the installation of 500 Autolib ‘stations. As for the underground car parks, considering their astronomical prices, they are not accessible to ordinary people.
- Other data on cars: the price of vehicles constantly increasing (technology requires), the increase in car and motorcycle insurance prices for several years, the planned increase in taxation on diesel by the government and the penalties that apply to old and polluting vehicles.
- Public transport. The Navigo pass only 70 USD monthly spend, August 1, at 73 USD, according to the announcement made by the president of the region, Valérie Pécresse (details here). Parisians had already complained about the increase that the single pass had represented for them (+ 20 USD on average).
- Wasted time. On average, Ile-de-France residents spend 1.5 hours a day on public transport. Either 7:30 a week, or 30 hours monthly! Almost one more work week per month.
As you can see, mobility is expensive in big cities like Paris. A cost that directly affects the portfolio, but which is also measured in lost time. In addition, the economy is taking an ecological turn which it is impossible to ignore – and which it is desirable to support – but which, too, has effects on our bank accounts.
Consumer credit is one solution. It makes it possible to invest in more efficient means of transport, more economical in the long term and more respectful of the environment, thanks to a short-term loan at a reduced rate.
Consumer credit and the French
The 2008 crisis disavowed it somewhat, but consumer credit seems to return to the smell of holiness among the French. Since the start of 2016, the indicators have in fact shown no interruption in the gradual increase in the production of new credits of this type. Raw data from the Banque de France indicates a 5.2% increase in outstandings over twelve months, between March 2015 and March 2016 – a pace that we had not observed since April 2010, as we can read on The echoes.
Why rising credit is good
In fact, the French are in debt again – and all the specialists agree that it is a good thing. Why ? Because a major part of French growth is based on household consumption. The current amounts borrowed by individuals as part of such a loan – 153 billion USD in one year – is therefore excellent news.
Does this enthusiasm seem unusual to you? This is because consumer credit should not be confused with revolving credit. This type of credit, also called permanent or replenishable, suffers from a very bad (justified) reputation because it can turn into a trap for consumers: it is a reserve of money that l ‘the credit organization replenishes as the beneficiary draws in, while it repays by paying high interest. It is this revolving credit that has been targeted by the government to avoid situations of over-indebtedness.
The various consumer credits
Classic consumer credit is a “simple” loan intended to finance various operations at reduced costs. One distinguishes in particular the consumer credit from the mortgage, because the amounts loaned are between 200 and 75,000 USD.
There are different types of consumer credit:
- The assigned credit (used for a purchase determined in advance), generally contracted at the point of sale;
- Personal loan (unrestricted credit, to be used at the discretion of the contractor);
- Revolving credit;
- Free credit (offers to pay in installments at no cost offered by certain points of sale);
- Leasing or rental with option to buy (payment of a monthly rent against the rental of a property that it is possible to acquire at the end of the contract), rather used for a vehicle.
A consumer credit does not lead to debt: it aims to finance a movable property or a service that cannot be paid in cash. For example, to acquire a new mobility solution!
Use consumer credit for mobility
Through a well-used consumer credit, you can invest today in a new type of mobility, to better escape the financial consequences of various increases, save time and participate in the development of clean travel. The object of your investment depends on your mobility needs. Take two examples.
Move more ecologically
Replacing your thermal vehicle with an electric or hybrid car will certainly not save you from traffic jams, but this choice will at least allow you to save a lot of money:
- On fuel (which will increase in the coming years, no doubt);
- On the insurance premium (an electric or hybrid car allows you to benefit from better rates, up to 50% cheaper if we believe this article);
- On the possible penalties that your thermal car will eventually suffer, as the thresholds harden;
- On repairs (an electric car that breaks down less often).
An electric or hybrid car therefore saves money in the long term, while developing more sustainable driving. But these vehicles remain expensive to buy, which is why you will have to go through a consumer credit.
Find alternatives to the car and public transport
It is true that environmentalists tend to send us back to public transportation to convince us to leave our motor vehicles in the garage. But if you live in the heart of a large urban area like Paris, there are other modes of mobility, called alternative, which remain ecological and which have the merit of saving you the time lost in transport.
You can in particular invest in two specific modes of locomotion: the bicycle, of course, which requires some physical effort (not always obvious early in the morning, or after a hard day’s work); and the electric scooter, which is more and more established in the urban landscape by getting rid of this image of toy which has long stuck to its skin. Take a look at this link to discover the different existing models.
With a consumer credit of a few hundred USD, it is thus possible to invest a sum which will quickly be reimbursed to you on the months of Navigo pass saved!
In summary, it is more than desirable to think about changes in personal mobility. Because, if this subject is essential and affects our daily lives for all, it is clear that the public authorities are struggling to seize it and really make things change. Take into account the hidden cost of your current mobility and calculate how much an investment, financed by a consumer credit, could save you in the long term, while respecting the planet better!