Toulouse: Mortgages explode to face the difficult end of the month

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In recent weeks, the Creede municipality has noticed a rebound in the mortgage brokerage business. In exchange for their most valuable jewellery, the people of Toulouse come to collect a little money for their needs.

It is a continuous ballet, a continuum of “alerts” that one of the counters in the Crédit Municipality de Toulouse is available. In the waiting room, women from their twenties to their sixties have one thing in common: treasure gold jewelry in their bags. In Crédit Municipality, located in the city center, 80 people come every day for a pawn loan: record attendance since the beginning of 2022. “I have three children, and therefore I am necessarily alone. I need money. Moreover, I had a problem with the car. Says a young mother, before calling me to the table. She brings, like 80% of loans, gold jewelry. After estimating its value, she can leave with the corresponding amount of money. They all come with a very specific need: “I want to make sure I can pay for extras for a party My son-in-law’s wedding,” witnesses a woman waiting for her turn. “I want to give a beautiful gift for my stepfather’s 45th birthday,” explains 48-year-old Jamila. “Often, the same words come back. This money is needed for daily needs.

‘It’s out of necessity’

The pensioner at first hesitates to answer and then shyly admits: “I’m not doing this to pay for a trip. It’s really out of necessity, it’s to improve my life. Even if it’s a short-term solution, the loan can run into big sums. On the other side of the counters, everyone They are busy. The expert, Maître Rigaud, passes jewelry of all kinds into his hands. He carefully scratched a necklace on a small black board: “I will put a product. If the color remains, it is golden. The verdict is there: the necklace and bracelet will let someone walk away with €2,100. And he comments: “Inevitably, as the news came out, the price of gold rose to 22 euros per gram, so it could go up very quickly.” In his office, there are paintings and vases behind him. “We have all kinds of things: electrical appliances, cutlery, bottles of wine. I even got a teddy bear last week. Loans can range from ten to thousands of euros, but they often swing around 600 euros.

revival in small loans

Since the beginning of the year, pledge loans in Toulouse have increased by 10%. A remarkable increase especially in the past two weeks after a long slowdown due to the health crisis. “Since January, we have provided 4 million euros in loans, that is, about 6,500 loans worth about 640 euros,” Crédit Mayor Frank Benabisi estimated. He expected this increase in light of higher prices but was concerned about this trend: “Previously it was mainly about one-time assistance: a caring service, an unexpected service … There, there is already a decrease in purchasing power. Six months later, it is still 9 Out of 10 Toulouse residents come to collect their things because they often have sentimental value. “I take a particular interest in these jewels…They really served me in keeping them financially after my divorce and I was able to get them back,” says Stephanie. Today, I’m doing the same thing again.” The same goes for Inas, 49, who did not get her first loan: “I will do everything to get her back. My mother has jewelry. If I don’t have the money in 6 months, I’ll pay the interest to extend my loan.” In the waiting room, they are likely to drop something as they should pick it up.

How does a pawnbroker work?

A mortgage gives a commodity during a period of six months in return for an amount of the value of that thing. The loans consist of 80% of gold jewelry but a variety of goods are lent: paintings, vases, electronic gadgets, bottles of wine … at an average price of 640 euros. After 6 months, these things, which often have a strong sentimental value, can be compensated and restored. Otherwise, an extension can be made at a low interest rate. After this extension, the pieces will be auctioned off by the Crédit Municipality.

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