Report: 42% of Israeli families live in overdraft

More Arabs then Jews avoid using credit cards, and less have mortgage debt.

Arutz Sheva Staff ,

Writing a postdated check (illustrative)
Writing a postdated check (illustrative)
iStock

Forty-two percent of Israeli families with at least one bank account were in overdraft for at least one month out of the past year, a survey by the Central Bureau of Statistics (CBS) showed.

Five percent of households had enough overdraft that the bank blocked their access to the account at least once during the past year.

The statistics also showed that 2.5% of households do not have a bank account, including 13% of Arab households and 1% of Jewish households. In addition, 51% of Arab households said none of the family members have credit cards, compared to 11% of Jewish households.

Mortgages

Twenty-seven percent of Israeli households have a mortgage, representing 31% of Jewish households and just 4% of Arab households. However, Arabs often inherit or build family homes, which do not incur debts or mortgages.

Nearly half (44%) of families with children under 18 have a mortgage, as well as 27% of single-parent families.

Savings

Sixty-six percent of households reported that at least one family member has a pension plan, and 51% reported that at least one family member has a savings plan.

Eighty-seven percent of households in the upper fifth of earners have a pension plan, 2.6 times more than those in the lowest fifth, where just 34% have a pension plan.

Finally, 28% of households reported that they have a savings plan - 38% of the top fifth, and 13% of the lowest fifth.



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