Everything on instalments, from shoes to funerals: nearly one in two Italians has made a purchase on instalments

Everything on instalments. From telephones to shoes, from medical treatment right through to funerals. All of this ranges from 6 per cent for food expenditure to 8 per cent for the cost of one’s final journey. These are just some of the figures emerging from the survey carried out by the Piepoli Institute on behalf of Udicon (Union for the Defence of Consumers). 

The picture is broad and encompasses various sectors, although the highest proportion relates to motorbikes and transport. ‘In Italia, we live on instalments and now we even die on instalments,’ says Martina Donini, president of Udicon. ‘Eight out of every hundred Italians would even pay for a loved one’s funeral in instalments, and one in ten would do the same for their utility bills. When an instalment becomes part of a family’s essential expenditure that cannot be postponed, it ceases to be a convenience and becomes a barometer of hardship. With winter just around the corner and energy costs so high, this is a sign that deserves everyone’s attention.”

The survey paints a picture of an Italia where instalment payments are a widespread practice. Almost one in two Italians – 45 per cent – have made a purchase on instalments in the last 12 months, with 21 per cent having done so several times and 24 per cent once, whilst a further 32 per cent would consider doing so. Among the purchases made on instalments or those that people would consider paying for in instalments, cars, motorbikes and other means of transport top the list, followed by household appliances, furniture and furnishings, both at 39 per cent. These are followed by household expenses and renovation work at 26 per cent, and technological devices such as computers and smartphones – where the figure drops to 23 per cent. Then there are unforeseen expenses or emergencies, which account for 18 per cent. Holidays are also paid for in instalments, albeit at a rate of 14 per cent. Then there are those who pay for utility bills, clothing, accessories and jewellery in instalments: in this case, the percentage drops to 11 per cent. Five per cent resort or would resort to instalments for school, university and training as well.

As for the reasons, 30 per cent of Italians choose, or would choose, to pay in instalments because they cannot afford the cost in a single payment, and 24 per cent so as not to withdraw a large sum from their account all at once. However, there remains a large group of people who are reluctant to pay in instalments: 34 per cent always prefer to pay the full amount straight away. Conversely, 7 per cent opt for instalments even when they could pay in full.

The research also highlights another aspect: for 57 per cent of Italians, ‘buy now, pay later’ – that is, the three or four instalments offered at the time of purchase, particularly online – is a simple payment method. Only 35 per cent regard it as a debt or a loan.