The bonus to pay off debts, is it a good option?

The salaries of the Argentine population are becoming less significant compared to the inflation that we are going through. According to data from a report by the Center for Regional and Experimental Economy (Cerx), the indebtedness reaches 76% of the families added to the fact that many of them used this resource to overcome the effects of the economic and social crisis. For its part, the Central Bank of the Argentine Republic (BCRA) establishes that the delinquency of companies until 2018 remained at 1%, and that currently, this percentage began to grow exponentially due to the country’s own situation. .

This is where the Collection Agencies come into play, who offer various alternatives so that people can pay off overdue debts that have been accumulating during this last time. For this reason, It is a great opportunity to take advantage of the additional payment of the Bonus to get rid of them or at least some of them.

Almost 40% of Argentines will use the bonus to pay off debts

Although the current situation does not have a short-term solution and we understand that the exit will be gradual, it is opportune to take advantage of the arrival of the bonus, evaluate the personal finances of each one and manage to advance in money planning without falling into a crisis of inability to pay and avoid the famous effect of “snowball” endless, which generates many problems today, expanding them into the future.

It is important, in principle, to know the scenario in which each one finds himself and order the priorities based on the income that each person and/or family has. For example, last year, many have been able to get rid of debts that they had been carrying pre-pandemic thanks to extraordinary cancellation and haircut opportunities that were being offered given the unusual context. Regarding the new debts acquired, It is convenient to find a quick solution without letting too much time go by so as not to accumulate interest that generates greater financial complications. In addition to this, it is also important to first get rid of those debts with the highest Annual Effective Rate. Each case will be particular, therefore, it is essential to evaluate the different cancellation alternatives, and the guidance of a collection agency advisor will be of crucial value.

Once the individual financial situation is stabilized, it is fundamental and, to the extent possible, to avoid falling into arrears by carrying out a budget and future planning. For this reason, it is decisive to invest as much money as possible by considering the different existing alternatives: purchase of goods, savings in foreign currency or cryptocurrencies, fixed-term depositsamong other options.

First, you have to get out of debt and then be able to use that money and convert it into an investment that, in the future, generates higher profits or serves as a safeguard in case of any financial unforeseen event.

Corporate Manager at Estudio Palmero de Belizán & Asociados (EPB&A).

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