In Italy there are many more debts (with interest rates in grueling growth) and far fewer deposits. To disclose these dramatic data, is the report contained in the supplement «Money and Banks» kindly granted by the Astro bank. These numbers shed light on a dramatic change in the management of the money of Italian families. In fact, in January, all bank loans were at least 5% higher. A number recognized on an annual basis. More exposition at barsugliafarms.com

While, on the contrary, the deposits comprising the entire private sector are always in constant decline (with a figure equal to 1.7% calculated, again on an annual basis). A sector that also includes Italian families. In any case, the Astro bank has been keen to point out that, since June, all the banks have included many securitization transactions in their loans (that is to say the sale of the assets and all the assets of a company which is located within the issue and placement of the various shares.

Mortgage rates and all consumer credit rates are on the rise

Mortgage rates and all consumer credit rates are on the rise

As if that were not enough, then, within the calculations from the Astro bank in the bulletin “Money and Banks” an incredible increase in average interest rates concerning mortgages and even loans emerged. Not forgetting, then, a filing of all the interests recognized on the various current accounts of the tax payers (from 0.36 to 0.35%). Furthermore, consumer credit rates are growing by almost half a point to 8.78%. A huge figure if we contrast it with the 8.33% recorded in December. Without forgetting mortgages from 3.18% at the end of 2010 to 3.36% at the beginning of 2011. This, at least as far as mortgages are concerned, means the highest level at least since December 2009.

The cost of credit for companies has fallen sharply

The cost of credit for companies has fallen sharply

On the other hand, the cost of credit for companies has fallen sharply. Remaining on the January figures, all the rates for new loans for companies, loans disbursed in the current month, are down by 10 basis points, reaching the figure of 2.69%. The drop was driven by all the rates on loans for amounts exceeding 1 million USD (2.36% compared to 2.56% in December). On the contrary, instead, all the rates for loans below the following threshold remain much more stable: 3.26% from 3.24% last month.

Loans to businesses recorded a strong increase

Loans to businesses recorded a strong increase

During January 2011, the well-known 12-month growth rate for bank loans to the private sector, regular for securitisations removed from bank balance sheets, increased by 4.8% compared to 3.6% in December. The 12-month growth rate of loans to non-financial companies, on the other hand, is to be recorded as up 4.2% from 2% compared to the previous month, the same growth rate for household credit remains unchanged from 5%.

As well as the much celebrated 12-month growth rate of non-performing loans, not valued with regard to securitization, stands at around 30%, from 29.9% in December. The private sector funding, annexes Bankitalia, shows a sharp drop of 1.7% on an annual basis compared to -1.2% in December. The growth rate for bond funding is expected to stand at a negative rate of -1.6%, unchanged for December.

Loans to families are the most affected

Loans to families are the most affected

It is clear, therefore, that families represent the “small company” that, more than any other, has shown enormous percentage hardships. The money is always less and the costs are always more. But how can we avoid further economic problems ? To begin with, it is absolutely impossible to open a debt to buy a TV. We are all absolutely aware of the fact that, in life, we also need small things to live on but, never as at this moment, does the economy allow it.

Open a debt to let your children study. Open a debt to pay off overdue bills. Open a debt to repair the damage to your home but do not throw away the opportunity to take advantage of this “bonus” so difficult to get to pay for a vacation or to buy a nice car compared to a small car. The current banking system certainly does not favor frivolity so, again, it is necessary to stipulate agreements of this type with the maximum maturity and maximum reasoning. To have something in the bank, it is much better to make some sacrifices than to fall into the whirlwind of loans and against loans made for the sole purpose of settling the troubles previously committed.

Loans to families, the choice is great but the quality?

Loans to families, the choice is great but the quality?

Every time we surf the web in search of the right loan, without a shadow of a doubt, we can easily understand how many companies are willing to give us a credit. Obviously it is not all that glitters is gold and, in most cases, we will find ourselves having to return an obscenely huge amount with respect to the loan received. Precisely because of this, the main advice is always to aim for the most renowned and most appreciated companies in the sector. In this case, the good name is a business card that is acquired with great effort. This obviously can only be a strong signal of quality.