Debt to pay off debts: Consolidation of Loans

Debt to pay off debts: this is the paradox in which thousands of Italians are “trapped”, forced to turn to the banks to ask for Loan that will only serve to pay off old debts. An analysis conducted by GrabiMoney highlights a disconcerting fact: in the first quarter of 2012, the requests for loans for debt consolidation grew by 241.9% compared to the previous quarter, those for the liquidity of 196.7 %. These are the ” Loan of the crisis “, which serve to buffer the effects of the recession and to reach the end of the month.

In the same period, credit applications for durable goods (cars, motorcycles, homes and furniture, etc.) registered a -40.9%, as did requests for credit for purposes considered not essential (ceremonies and gifts, travel, health and beauty), which lost 42.1%. In April, this trend is fully confirmed: for consolidation and liquidity, the Loans continue to increase (+ 50.2% and + 61.9% respectively), while all others decrease.

The amount and duration of the Loan are growing


The study conducted by GrabiMoney shows an increase in both the amounts requested and the duration of the loans: a clear signal that Italians are in increasing need of money, but prefer repayment times diluted over time in order to take advantage of small installments. In the first quarter of 2012, the average amount requested was € 16,315 (+ 6.44% compared to the last three months of 2011), while in April it stood at € 17,383, marking an additional + 6.55%. However, those who ask for a loan for consolidation need higher sums: in this case, the requests stand on average at € 27,112 in April.

As regards the duration of the requested loans , there was an increase of 5.02% between last quarter 2011 (average duration 67 months) and first quarter 2012 (average duration 70 months), to which is added a further growth of +17, 22% recorded in April, when the average duration of Loans was 82 months .

Identity of who requests a loan

money loan

The analysis also reveals the profile of those requesting a loan with more frequency: these are mainly permanent workers (74.2% in the first quarter of 2012, compared to 63.8% in the first quarter of 2011), who have their backs the safety of the “permanent job”. On the contrary, the number of loan requests by temporary and self-employed workers decreased (7.2%, against 11.7% in the previous quarter).

‘Those who do not have a stable work situation are increasingly prudent and discouraged, even in the face of the fact that banks, in this period, very rarely grant credit to those who cannot offer solid guarantees. This is demonstrated by the GrabiMoney data on the Loan supplied : the ratio between the loans granted and the number of requests presented has in fact decreased in recent months, going from 8% in the period July-September 2011 to 6.3% in the quarter October- December 2011, to settle at 6% in the first quarter of 2012.

“The results of the analysis show the cross-section of a prudent and very distressed Italy – explains Andrea, managing director of GrabiMoney. Access to new sources of liquidity is no longer important just to guarantee small pleasures, but always of more to support mortgage and Loan payments already in progress, or to face the costs of everyday life. A very worrying sign that, unfortunately, is fully in line with the evolution of the economic situation “.

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