42% of households in Israel been in an overdraft in the bank for at least one month


by Ifi Reporter Category:Financial Dec 10, 2019

42% of households in Israel that own a bank account have been in an overdraft account for at least one month during the past year (2018). This represents no less than 1.1 million households, comprising 4 million persons. This is according to a survey of household financial assets, published by the Central Bureau of Statistics (CBS).
The survey, for the sixth consecutive year, has followed a fixed sample of about 4,000 households with about 12,000 persons over the years. According to the findings, about half (52%) of households with children have been over-drawn for at least one month in the past year, compared to 30% of households with no children.
In addition, 22% of households reported that they were generally in overdraft, and were in overdose for 10 months or more in the past year. In addition, 10% of households were in overdraft for a period of up to 3 months, and another 10% between 4 and 9 months. Among households with children - about half of them were attracting about half of households.
Of the overdraft households, 26%, which is 295,000 households with 1.1 million persons, reported that they received at least one request from the bank due to deviations from the credit limit in the past year, compared to 7% who received 6 inquiries and above. For 5% of these households (about 60,000 households with 243.5 thousand persons), the account was blocked at least once during the past year, with 3% of the account being blocked for more than one month.
The survey also reveals that 27% of Israeli households have a mortgage, which is 740,000 households with almost 3 million people. The amount of the average loan remaining for repayment is about half a million shekels. Jewish households with mortgages are much higher than Arabs, with 31% versus 4% respectively.
The rate of households with its mortgage climbs with the rise in monthly income per capita, from 14% in the lower quintile to 35% in the fourth quintile, but in the top quintile it drops to 33%. It has also been found that almost half of families with children whose youngest child is less than 18 (44%) pay their mortgage, as does a third (27%) of single-parent families. Among households without children, their mortgage rates fall to 13% -15%.
Non-mortgage loans show that 29% of households, which are some 790,000 households with 3 million persons, hold loans at an average level of NIS 96.2,000 per household. When looking at the sources of the loan - the vast majority (92%) took a loan from the bank, 7.5% from a credit card company, 5% from the insurance company, and 5% from a private person or a private organization.
And what about savings? About two-thirds (66%) of households reported that at least one household member had a pension fund savings (1.78 million households), and half of households (51%) reported that at least one household member had savings in a provident fund. The savings rate increases with the increase in household income, with 87% of households in the top quintile saving - 2.6 times more than in the bottom quintile (34%).
The findings also reveal significant gaps between the Jewish and Arab populations. Meanwhile, 2.5% of households in Israel (69.4 thousand households in Israel with 242.4 thousand persons) have no bank account, but according to population groups it is found that among Arab households this is 13%, compared to less than 1% Only among Jewish households.
Gaps were also found in the other parameters. For example, 16% of households in Israel do not have a credit card (about 425,000 households with about 1.3 million people), with Arab households occupying a larger volume, with about half of households not having a credit card, compared with 11% of households. The Jewish home.
A survey of households with a credit card found that 13% rejected the payment date for their purchases, including 33% of Arab households and 11% of Jewish households, and that 17% made a deployment purchase with interest payments, including 46% of Arab households. And 15% of Jewish households.
The proportion of Arab households who received a request from the Bank due to deviations from the credit line was also higher than Jewish households (36% who received at least one request, compared with 25% respectively). In addition, Jewish households are less overpriced than Arab households, with 33% of Arab households being overdrafted almost all of the past year (10-12 months), compared to 21% of Jewish households.




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