The market data throw surprising conclusions: 40% of Mexicans do not save, and that is certainly a drag when it comes to growing as a country economy.
The number of those who do save among the Mexican population should be cause for joy, although many (about half) use rudimentary methods: batches, family loans, safe boxes. These options are at risk because if there is a disaster in the house, all the money saved can be lost.
Although it is most important, in addition to saving informally thanks to these homemade methods, Mexicans save their money thinking mainly in the short term, in the immediate morning, to cover emergencies, urgent debts or immediate personal goals. Lastly, it is no accident, there are reasons such as retirement and investment.
The reason for not saving: “it is not enough”
Many Mexicans declare that they do not save because their income does not allow them to go beyond covering basic needs, and there are even fortnights that have to resort to a bank loan or borrow money.
Similarly, applying for personal credit or a fast online loan to cancel debts from credit cards, urgent payments or other immediate expenses is becoming a very common alternative among the wide segment of the population with high debts in Mexico.
The 2018 data recorded a double-digit increase in the amount granted to three-quarters of total loan clients, who seek to consolidate their debts on cards, which would imply that they arrive more indebted than before. It is not possible to save if you have to pay off previous debts and achieve stability and relief in the domestic economy.
Consolidate debts, a first step on the road to saving
In general, the consolidation of a debt implies grouping all the debts in progress into a single payment through a new loan, with the specific amount that covers those debts and with a longer repayment term.
This allows you to pay easily and so people can better control their money since they only establish a single creditor and not several with multiple dates, interest rates, call for collections, paperwork, and other problems. The consolidation of a debt is a solution that is available to everyone but requires good financial habits to ensure that the solution is permanent and ceases to suffer from recurring payments.
Today there are many options among traditional banks and also by financial technology companies, as they operate online at lower costs, faster response times and more accessible requirements and conditions for all of their clients.