Category: Credit

Credit agreements: almost 40% of adults have one or more in progress

The study conducted by Mister Credit, the CRIF area that deals with the development of educational solutions and tools for consumers, shows that almost 4 out of 10 Italians, more precisely 39.4% of the total of the adult population residing in Italy, at least one active installment credit agreement is in progress (+ 8.0% compared to a year ago) while installments are repaid monthly for an amount equal to 344 dollar (-1.5%).

The average residual debt is equal to 33,084 dollars (down -1.8% compared to the corresponding 2018 survey). Mortgage contracts weigh heavily on the Italian portfolio.

Most common forms of financing


Consumer loans rank first among the most common forms of financing, with a percentage of total loans equal to 45.5%. Second position for personal loans which account for 32.8%. Finally, third position for real estate mortgages (21.7%).

Regional distribution of credit agreements

Tuscany is the region with the highest share of the adult population with at least one active credit ratio, which turned out to be Tuscany (44.2%). Followed by Sardinia (with 43.2%), Friuli-Venezia Giulia (with 42.9%), Lazio (with 42.3%) and Valle d’Aosta (with 41.8% of the population). Last position for Trentino Alto Adige, a region in which only 20.2% of the population has at least one active credit agreement, penultimate position for Basilicata (with 32.1%, third-last for Molise (with 33, 8%).

The distribution of mortgages by region

The distribution of mortgages by region

As regards mortgages, the highest incidence was found to be that of Friuli Venezia Giulia, with 30.8% of the total, followed by Emilia Romagna (with 26.2%) and Lombardy (with 25, 9%). Calabria, Sardinia and Campania are in the last positions, respectively with 13.6%, 15.4% and 15.8% of the total.

Regional distribution of personal loan contracts

With regard to the technical form of personal loans, however, the highest incidence is found in Molise, with 37.2%, ahead of Basilicata, with 36.6%, while Tuscany and Lombardy close the national ranking with 29.9% and 30.3%.

Regional distribution of targeted loans

Finally, as regards consumer loans, Calabrian and Campania citizens are the ones with the highest incidence, respectively with 53.5% and 49.9% of the total.

The average amount of installments repaid each month

The average amount of installments repaid each month

The highest monthly average installment is paid in Trentino-Alto Adige, with 430 dollars, followed by Veneto (with 390 dollars) and Lombardy (with 387 dollars). Fourth place for Emilia-Romagna and Tuscany, respectively with 370 and 364 dollars.

These data must be interpreted taking into account the fact that the incidence of mortgages is high as well as greater income availability cannot be ignored.

In contrast, in the South and in the Islands we find the lightest monthly average installments, especially in Sardinia (285 dollars), in Calabria (290 dollars) and in Sicily (301 dollars). In these regions, the greatest impact is due to targeted loans which generally have lower installments.

Regional ranking of the remaining amounts of the contracts

Also as regards the residual amount of the debt, we find Trentino-Alto Adige at the top of the national ranking, with 43,289 dollar per capita still to be paid off. Lombardy follows in second place, with 41,189 dollars, while the residual exposure of Emilia Romagna and Veneto is around 38,000 dollars.

The lowest residual exposure is that of Calabria, with only 21,848 dollars. Together with Sicily and Molise, they are the only regions where the value still to be reimbursed is less than 25,000 dollars.

When contracting a credit: fixed rate or variable rate?

The popular saying that “cheap is expensive” also applies to loans. Honestly, how many have not been tempted to see ads of “low” interest rates, zero commissions, substantial reductions in the premium to be paid, among many other facilities? Such offers are common, for example at fairs, but a “detail” that could seriously erode their finances is generally ignored: the attractive rate they offer is variable.


When a credit agreement is signed

credit agreement is signed

It is rarely read in detail and the interest is not understood. When talking about a variable interest rate, bank representatives often say that it could increase “a few cents”, so that customers do not consider it a risk.

But there are cases like those of a colleague who signed a mortgage loan with a variable rate, because the bank advisor promised that the fee would not change much, but over time the rate was adjusted upwards and for six months he came to pay 20 dollars more compared to your initial fee. He had to request the review from the bank, claimed and the fee was reduced. He currently pays $ 11 more each month than when he started the loan.

As I have insisted in other articles, in a highly dollarized economy such as Nicaragua, but with salaries in Cordoba and with an annual slip (devaluation or loss of value) of five percent, a change of ten or twenty dollars in a monthly installment can unbalance any average budget.


That is why before getting a loan you must take into account:

Compare rates

Do not leave with the first option. In the local financial system there are half a dozen banks, we must compare the interest rates they offer and mainly understand how that rate is structured. The bank advisor should explain what the base rate is and what factors are added to it (if it is the behavior of an international reference rate, the average rate published by the Central Bank, etc.). If the rate is variable, it will be reviewed quarterly.


Rate a fixed rate

This is mainly for very long-term loans, such as mortgages and not all users can apply. Generally fixed rates are agreed when banks offer the credit, but when it is the user who comes to request it, it must be he who initiates the negotiation. Although a fixed rate could initially be higher than the variable rate offered, in time it would save strong increases in their fees, as happened to the colleague.


The advantage of the fixed rate

interest rate

Is that you could budget your installments without problems they will not vary, but whether the financial institution approves it or will not depend on other factors such as the level of risk of the loan type and the credit rating of the client. It is important to have a good credit record.

Variable rates are manageable by people with flexible budgets, who can take that risk without damaging their finances. But you should know that the rate initially agreed would be the minimum rate over the life of your credit, you can go up but not go down that amount.


If your credit is very short-term

If your credit is very short-term

The variable rate may suit you, as the review is every three months and in such a short term it would hardly increase much.

If you want to give weight to your weights, analyze these factors before deciding on a rate. Also take the time to compare the credit offer, as one bank may offer you a better deal than another.