It’s no longer only the average Israeli who’s worried about his overdraft, now the Bank of Israel is worried too.
An increase in per capita debt has moved the BOI to undertake a study to find out more about the phenomenon. Four years ago, the collective debt owed by households to their banks totaled 106.8 billion shekels. This has now risen by 18%, to 126 billion shekels.
No fewer than 63.5% of Israelis are frequently in “minus” condition in their bank accounts, and Bank of Israel wants to know why.
One-seventh of Israelis are always overdrawn, and another eighth “most of the time.”
The problem affects salaried employees and small business owners, high- and low-income earners, religious, secular, young and old.
The only major sector relatively unaffected by overdraft syndrome are young couples and singles who have not yet taken out a mortgage for a home.