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From Indebtedness to Over-Indebtedness

  • Daniela Vandone
Chapter
Part of the Contributions to Economics book series (CE)

Abstract

The analysis carried out in the previous chapters has highlighted that borrowing certainly gives individuals the possibility of improving lifestyles by smoothing consumption over their life time. However, there are also concerns that some individuals risk a level of indebtedness that is unsustainable in relation to their earnings and that such a situation may lead to over-indebtedness.

In this chapter, we will attempt to provide a definition of over-indebtedness, analysing, in particular, the problems faced in measuring the phenomenon and its determinants. We then look in detail at the measures adopted so far in Europe to prevent ex ante and manage ex post over-indebtedness. The strengths and weaknesses of these measures are analysed in order, where possible, to evaluate the rationale and effectiveness of, at times, widely differing instruments and actions.

Keywords

Central Bank Financial Difficulty Financial Literacy Financial Intermediary Financial Education 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2009

Authors and Affiliations

  1. 1.Università degli Studi di MilanoDepartment of Economics, Business and StatisticsMilanItaly

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