There is a common misconception when it comes to the economic stability of every developed country. For many, they believe that developed or the so-called First World nations such as France, which is more popular because of it being a member of the European Union, are not affected by the global financial crisis. The effects of the financial crisis are very stark in the Third World and Second World countries, but in the more advanced nations, is there an economic crisis?
Since it is a “global” financial crisis, it means that even France as an advanced nation undergoes an economic lowdown. This is because economies of countries all around the globe are connected to each other, especially to imperialists who are dominating the economic activities are smaller nations. Now, what are the effects of the financial crisis in France when it comes to loans and debts?
Since the country is in an economic crisis, its citizens are concretely experiencing the ills of the lowdown. For one, just like in the United States where they had a “housing bubble” where US citizens are having a hard time paying for their houses, the French have been experiencing difficulties in paying for their loans and debts. Since the financial crisis offers no job opportunities for them, and therefore they do not have enough to spend for their basic needs, they tend to rely on securing loans and credit/debit cards. Since many financial institutions are offering different kinds of loans with a number of benefits, people tend to be tempted to have them as they are instant cash. But, yes, they are under specific terms and conditions provided by these lending institutions. And so, there is a specific period
of time wherein the borrowers must complete the payment.
In the case of France under the global financial crisis, more and more citizens are clinging to securing loans and debt to help them with their finances. However, they are now getting in to too many debts because they cannot find money to pay these transactions because of this crisis. On the other hand, more and more financial institutions are also closing down these days because they are also experiencing the crisis. Foreign lending institutions in France are now shutting down and transferring to other countries which are, at least, better off with their economies. Indeed, the global financial crisis has devastated even the advanced nations such as France.