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Consumer Credit in Italy and Financial Fragility


  • Cavalletti Barbara
  • Lagazio Corrado
  • Vandone Daniela


The paper focuses on the consumer credit market in Italy and on the related risk of over-indebtedness. Using survey data, it investigates the impact of over-indebtedness on consumption behaviour, evaluating in particular if consumer credit is used to cover gaps in income and if this is associated with an increased and diffused inadequacy of financial and economic position of indebted households. Results highlight that a relatively consistent part of consumer credit is concentrated in the hands of financially fragile individuals. Moreover, when considering the amount of debt measured in relative terms, a difficult financial position adds 2,7 percentage points to the risk of over-indebtedness compared to households without any financial difficulty.

Suggested Citation

  • Cavalletti Barbara & Lagazio Corrado & Vandone Daniela, 2011. "Consumer Credit in Italy and Financial Fragility," Economia dei Servizi, Società editrice il Mulino, issue 1, pages 79-94.
  • Handle: RePEc:mul:j1t56u:doi:10.2382/35114:y:2011:i:1:p:79-94

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    Cited by:

    1. Luisa ANDERLONI & Daniela VANDONE, 2010. "The profitability of the consumer credit industry: evidence from Europe," Departmental Working Papers 2010-24, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    2. Barbara Cavalletti & Corrado Lagazio & Daniela Vandone & Elena Lagomarsino, 2012. "The role of financial position on consumer indebted-ness. An empirical analysis in Italy," DEP - series of economic working papers 8/2012, University of Genoa, Research Doctorate in Public Economics.


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