Assess your finances to avoid over-indebtedness in 2022

Among the most common New Year’s resolutions, it is worth not having debt; However, that desire can fade into holiday spending and, as a consequence, arrive in January with a financial hangover.

The situation is complicated when a simple debt is joined by others until reaching an over-indebtedness.

“Over-indebtedness is a condition in which a person has a high level of indebtedness that puts their ability to pay their credits at risk. Having debt is not synonymous with over-indebtedness, so it is important to know the differences and how to detect if you are in one situation or another, “said the Kueski loan platform.

In this sense, he explained what the difference is between the two concepts.

“Debts are a set of obligations that a person has to pay, generally this debt is money (…) and when we request more loans or financing than we can pay, we have excess debts, that is when we have fallen into over-indebtedness ”He added.

This situation is not very alien to Mexicans since according to the National Institute of Statistics and Geography (Inegi) through the National Survey on Household Finances 2019, it showed that in Mexico 60.2% of households have debts with credit cards for an average amount of 15,700 pesos.

Common mistakes

The Multiple Purpose Financial Society (Sofom) KonDinero explained that credit plays a very important role in the family economy and in personal finances since it is a way in which wealth is increased because – he added – not many people have the liquidity to acquire some goods.

“However, for credit to work it is vital not to over-indebted as it could endanger our peace of mind (…) for example, one of the most common mistakes is to assume that the credit card is extra money, when in fact it is it is a loan that must be repaid. To this misconception is added another very common one, which is to pay only the minimum payment of the card, “said KonDinero.

Faced with such a situation, the Sofom advised preparing a budget, which must be detailed and must display both income and expenses to prioritize the acquisition of goods and services as well as exercise smart consumption, avoiding impulse purchases that are usually made in this situation. season.

In this sense, Kueski added that when spending without organization it is very likely that there is an imbalance in his finances. “The same thing happens when requesting credits or using credit cards to pay indiscriminately. Before processing a loan or paying with a credit card, we must know what our margin is for the payments that we are going to have to make ”, he recommended.

Alerts on

Do you have doubts about whether you are falling into over-indebtedness? Kueski warned that there are some signs that may give the first warnings that it is falling into this condition.

The first, he said, has to do with a problem he considers common: having trouble meeting the monthly payments for financial commitments; Another alert to consider has to do with only making the minimum payments on your credit card (s) or, failing that, using a credit to pay another.

When your payments are higher than your income, Kueski added, it’s a sign that shouldn’t be taken lightly.

“It is necessary to pay attention to our economy, look for payment alternatives and make a plan that helps to overcome the crisis we are going through,” he recommended.

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