5 tips on how not to apply for a loan before heading back to school



For this return to school, families will spend over 5,000 pesos for each girl and boy to buy uniforms, backpacks, shoes, tennis, school supplies and disinfectants.

20 August 2021

4 min read

This article is translated from our Spanish edition using artificial intelligence technologies. Errors may exist due to this process.

Opinions expressed Entrepreneur the members are their own.

V 2021-2022 academic year for the basic education level will begin next Monday, August 30, in the Mexican Republic. Students will return to face-to-face studies after a year and a half away, and mothers and fathers will have to bear high costs to meet the needs of their daughters and sons.

According to the National Alliance of Small Traders (ANPEC), for this return to school families will spend over 5,000 pesos on each girl and boy to buy uniforms, backpacks, shoes, tennis, school supplies, tuition fees, medical certificates and sanitary supplies. Added to this is registration and tuition for those attending a private school, in addition to the cost of textbooks and extracurricular activities.

It should be borne in mind that during the past school year, parents had to spend a significant amount of money on the purchase of computers or other devices so that students could attend distance classes. In many cases, they also had to hire new online services to facilitate their academic work.

Tips on how to avoid having to apply for a loan

Returning to school can be an urgent situation, so those in charge of managing family finances should explore various alternatives to cover these costs without endangering others.

Getting a loan without taking into account previous debt increases existing debt, makes it difficult to pay off and can lead to a poor credit rating, which could affect access to financing in the future.

According to fintechs Bark and “Solve Your Debt” are 5 tips to avoid getting a loan before returning to school:

Contact an expert … Returning to school always means a significant expense for parents. In this case, instead of getting a new loan to pay off your debts, it is recommended that you turn to experts who can advise you to draw up a payment plan in order to repay them on more affordable terms and in more affordable amounts.

Consolidate debt … Many people make the mistake of paying with one card with another or borrowing money to pay off their debt. The best way to get out of this situation is to consolidate debt, which means that various user debts, credit cards or loans are grouped into a single payment amount. When consolidating debt, it is important to choose the one with the lowest interest rate to make it easier to pay off.

Financial education … Prevention is key, and through financial education, users understand what financial products and services are, how they work, and what their benefits and risks are. A good financial education allows people to save more, make better investment decisions, use their loans more wisely, reduce their debt levels, and strive for a better quality of life.

Returning to class always means significant costs for parents / Image: Enrique Alfaro via Facebook

Make a budget … Before thinking about applying for a new loan, make a budget. This way you will know what your net income and your fixed costs are. With this exercise, you will be able to determine what you are spending too much money on and what things you can save on. Review your priorities and focus on paying off your debts. Remember to make payments on time to avoid interest on arrears.

Look for new income … Investing in debt to pay off debt can be a vicious cycle. If your debts exceed your ability to pay, it is important that you earn more income in addition to cutting costs. You can look for options such as freelance , work overtime, or get a temporary second job.


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