‘Bad’ debts compromise personal finances, warns specialist

Wednesday July 3, 2024 2:40 PM

Editor: Selene Shirma

In an interview with the Second Issue of XEVA News, actuary Noemí García Álvarez said that there are two types of debt that are regularly acquired: ‘The good and bad’.

The Finance teacher explained that good debts are obligations that will generate higher income in the long term, for example mortgages, since a home will increase in value over time; another example is student loans since they will provide benefits later on, as well as acquiring a debt but to start a business.

Regarding bad debts, García Alvarez said that the worst of all are the tcredit cards Because it is a snowball that severely affects people’s economy; also, buying a car is a bad investment, because once it leaves the dealership it loses its value, and the interest and maintenance are very high.

The expert mentioned that it is also very common for people to go to great lengths to throw a party, and there are even some who give up their property to do so. ‘Never get rid of a goodfor a bad debt…’ and added that it is only justified when it is due to an illness.

García Álvarez revealed that young people between 18 and 25 years old are the ones who spend the most, but on things that do not represent a long-term benefit, such as: entertainment, clothing and makeup, among others.

To save and invest, he mentioned that you can start – even with 500 pesos – in banking institutions or the Bank of Mexico (Banxico) itself through CETES Directamong other options.

For Latest Updates Follow us on Google News


PREV Permission to cut down 150 trees and install the Roller Coaster game is denied
NEXT Colombian may be involved in London human remains case