The French Approach to Debt

"Whenever you take a mortgage, a loan or open a line of credit, the bank checks out your income. You have to earn at least 3 times the loan repayment amount, net. If you earn €1,000, you can take a €333 mortgage. If you earn €1,000 and already pay €350 in rent, you can’t borrow anything... This criteria is very strict and limits the number of bankruptcies. It also makes it a nightmare to get a mortgage those days, with the price of real estate in Paris… Often your parents have to cosign your mortgage, at 35 it is quite the experience." - ReachFinancialIndependence.com

------- [Eiffel Tower photo by agaw.dilim]