Crésus Overindebted French Households, Digi Mart USA News (Deux-Sèvres, France): In a quiet fourth-floor office of the Maison des Associations, the local branch of Crésus works discreetly to support people struggling with debt. Volunteer head François Faure says people often arrive reluctantly, ashamed of their situation, and the association aims to make them feel safe and at ease.
Christine, 64, is one of the 70 households the Deux-Sèvres branch supported in 2025. That figure is up 30% locally and 10% nationally since 2020.
She explains that the process is not easy because people feel they have failed to manage their budget.
Overindebtedness is recognized when a person can no longer meet obligations such as loans, rent or taxes. For Christine and her husband, a former hotel housekeeper and mechanic, the problem grew after retirement, when their pensions fell because they had not completed all their contribution quarters.
Their combined income of 1,700 euros a month left them below the poverty line defined by INSEE, with no housing aid.
After paying rent of 650 euros, food of 250 euros, insurance and electricity, little remained for the family. Faure argues that the main cause of overindebtedness is not excessive credit but poverty: according to his figures, 62% of overindebted people live below the poverty threshold.
Many were hit by life events such as divorce, bereavement, job loss or illness.
Faure’s figures also show that 26% of those helped are unemployed, 14% are retirees and 12% are young people. He says the share of young people, which has risen from 5% to 12% in five years, is unprecedented and a warning sign.
Overindebtedness also affects households with good incomes. Of the 70 households Crésus Deux-Sèvres supported in 2025, three had a comfortable standard of living but carried 15 to 20 large revolving credits for items such as travel and cars.
The other 67 had borrowed mainly for basic necessities.
Christine and her husband had borrowed simply to replace broken appliances and furniture. Retirement changed everything: repayments and interest became impossible to meet.
Facing bailiffs and debt collectors, they applied to the Banque de France in October 2025.
In France, a specific procedure allows overindebted people to seek solutions if their application is admissible. Applicants must submit a detailed file with supporting documents to the Banque de France branch in their department.
Faure says the process is demanding, often requiring 15 to 20 documents covering personal circumstances, assets, resources and all debts.
Christine first tried the process alone at a France Services counter, but she made errors and her file was rejected. Crésus then guided her through the process, taking time and asking questions without judgment.
Crésus supports households step by step, and the file can require four to six months of interviews depending on complexity. Faure notes that many people struggle with computers and are wary of administrative paperwork.
Some arrive with unopened envelopes, hoping things will improve on their own, which he says usually makes the situation worse.
Faure says that once the application is complete, the debt commission assesses admissibility by examining the household’s situation, repayment capacity and good faith. He reports that 90% of applications are declared admissible.
Solutions may include repayment plans of five years for tenants and up to 25 years for homeowners, full or partial debt cancellation, or a two-year moratorium freezing debts.
For Christine and her husband, whose repayment capacity was zero because expenses exceeded income, the debt of 34,906 euros was fully cancelled. They received the decision in June 2025, which she described as a total relief.
Faure’s main challenges are attracting overindebted people to the office, since many do not come voluntarily even when they have appointments, and recruiting more volunteers. Crésus Deux-Sèvres has also offered a personal microcredit of up to 8,000 euros since February 2026, though only five of 50 applications in the department were accepted.
Christine acknowledges that a relapse is possible, as she had previously benefited from a Banque de France procedure. She now prioritizes essential expenses such as water, electricity, rent and internet, has moved her electricity bills to monthly payments and switched suppliers.
She says she will no longer take on credit, and describes the sacrifices but also a new sense of serenity.
