Over-indebtedness as a Social Phenomenon

Over-indebtedness is a widespread reality in many countries and is, above all else, a social phenomenon that has heavy psychological implications. The economic crisis that has loomed since 2008 has made itself felt especially among workers, swelling the ranks of the unemployed. Those who have kept their jobs have seen their purchasing power and, in some cases, their wages drop dramatically. These are just some of the reasons that may have led the consumer not to pay bills, taxes, car installments or mortgage payments. Unforeseen expenses, due for example to medical treatment, or poor planning of one’s finances contribute to excessive debt.

What exactly is the over-indebtedness condition?

This difficult situation occurs when one’s salary and any savings are not sufficient to repay the debt incurred. Consequently, it is easy for those who are in debt and do not see a way out, suffer from depression and stress, have self-esteem problems and are prey to anxiety. According to the British voluntary association Mind, 91% of those who have obligations that they are unable to honor say that anxiety negatively affects their psychological well-being. Not being able to meet the debts that in the past were not difficult to pay off naturally also represents a social problem: it is in fact the impoverishment of various social layers due to the economic crisis. An incorrect perception of the debt / credit ratio, in addition to market distortions, has led many families to find themselves in difficult economic conditions.

Legislative interventions in Italy

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The phenomenon of too many debts has always existed, but in the last 50 years it has expanded to the point of requiring specific legislative interventions. Italy regulated the situation with Law 3/2012 and, subsequently, with Law 179 on the composition of the “over-indebtedness crisis” of debtors. The “consumer plan” procedure is one of the three ways offered by the legislature to solve the problem: that is, you can resort to trusted consultants, to develop a proposal based on your financial possibilities, which will then be evaluated in the competent offices.

We at RealFund offer personalized credit consultancy to develop effective and tailor-made solutions; it is thus possible to reduce the debt, block the executive procedures and get to debt, which frees you from unpaid debts.