Subscriptions, installments and mortgages: this is why Italians have so much debt

Male, between 36 and 55 years old, graduated from high school and lives in a Southern city. This is a graph of the average highly indebted person. In Italy there are thousands of them, and they are increasingly struggling due to inflation and high interest rates. However, the fear is that the people who have taken on too much debt, who have taken the longest possible step, are so much more. It is a phenomenon that is difficult to analyze, because often those who have problems of this kind tend not to talk about it. “It is a kind of submerged world – explains the Secretary General of Movimento Consumatori (MC) Alessandro Mostaccio – made up of people well known to financing companies, sometimes to Caritas, but not to the state”.

debt economy

How did this phenomenon arise? The economic model we live in can lead to over-indebtedness. Almost everything can be paid Convenient installments. The refrigerator, the car, the construction work, the bills. Sometimes there is no interest, and in other cases, like mortgages, yes. And if at variable rates, then the rate increase by the European Central Bank makes itself felt. Added to this is what experts call a Subscription economy. These days it’s hard not to have at least two paid subscriptions per month or per week to watch TV series, read books, listen to music, sometimes even in buy now pay later format (Buy now and pay later). Thus, it is easy to lose count, get carried away and find yourself having more expense than income.

Those who are heavily indebted

Ways to extricate themselves exist, but they are mostly unknown. This is why Mc I’m leaving, a branch through which it has helped 2,500 indebted people from all over Italy – including individuals and small businesses – to restructure their debts, obtain a subordinate arrangement, or controlled debt liquidation. Service that can become structural. “The good news is that reforming the EU directive on consumer credit requires Italy to provide itself with a free and unbiased debt counseling service,” adds Moustacchio. Continuing with the identification, we discover that in most cases we are not talking about precarious workers or the self-employed, but about permanent contracts and pensioners, who see between 900 and 1000 euros arriving on their salaries every month, «perhaps with the transfer of a fifth in progress». Mustaccio continues. And – he continues – there is no shortage of employers who are able to give up five times as much, or 40% of their salaries.


He explains that people mostly go into debt (60%) to buy movable property Republic Citing Data Mc. So, in general, cars, televisions and technological products. Dwelling-related expenses, such as rents or utilities, and mortgages (10%) follow at a significant distance (11%). The main creditors are banks (33%), finance companies (22%) and in third place is the state with its revenue agency (20%). If we add that subscriptions to Netflix, Amazon, mobile phones and the like can remove up to 100 euros per month, and that commissions for those who delay payment by Buy now and pay later It can be as high as 25%, one realizes how easy it is to find yourself in over-indebtedness.

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