Economic crisis leaves Italians deep in debt

According to the data of the Italian Association for Environmental Protection and Consumer Rights (Codacons), in 2014, the amount of unpaid debt of households in this country reached 50 billion euros, equivalent to each person, including newborns, owing an average of 833 euros.

Unemployed Italians look for work. (Source: www.bloomberg.com)

According to Codacons, this is a record debt level for Italian consumers.

This debt has increased by 16% in the past two years and if the Italian economy does not show signs of recovery next year, the debt burden will increase further, pushing more Italians into hardship.

Codacons based this estimate on bank loans, mortgages, installment purchases as well as unpaid utility bills such as electricity, water, and energy from consumers since the beginning of the year, including those for which banks or service providers have had to hire debt collection companies to force debtors to pay.

According to a Codacons survey, most Italian households have been late with at least one utility bill this year, and it is not surprising that the southern regions of Italy, the poorest region in the country, have the most debt, with consumers in Sicily owing 7.4 billion euros, while families in Campania, which has one of the highest unemployment rates in Italy, owe 5.7 billion euros.

Codacons President Carlo Rienzi said the economic crisis not only impoverished families, with members losing their jobs or at higher risk of unemployment, but also led to a serious decline in purchasing power.

Therefore, paying off debts that are due becomes extremely difficult for many individuals or families, not to mention those who have been in debt for years./.

According to Vietnam+