It has emerged today that France appears to be weathering the credit storm and in an interview with a once London banker who has moved to France he explains why he believes this is.
He explains how people in London are keen to use up all of the money that they have and explains how an ex colleague got a very nice bonus so he went out immediately to buy a new car. He goes onto explain how most people in France only spend what they make in a years income and therefore spending is not fuelled by credit as it is in USA and UK. Banking rules are also different in France and Credit Cards are more like debit cards. If someone went to purchase an expensive item but didn’t have the funds in their account than the bank would be alerted and wouldn’t allow the transaction to go through. This way it means that people do not spend money that they do not have.
It was also claimed that if you are wanting to purchase a house in France you will have to have a big deposit as people can only borrow one third of there annual income.
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