Jul 12

Debt to pay off debt. The Time Bomb for the Middle Class

‎”A little over a year into the pandemic, the average loan application to write off debt remains close to 39%. In this way, it is verified that a large part of the destination of the funds of our loans are still oriented to cancel other liabilities and in this way unify expenses”, said Florencia Valdés, marketing manager of Ixpandit Fintech Factory, the company that owns ‎‎Adelantos.com.‎‎ In addition, 15% of those who sought a loan through the platform did so to pay for services and 20% to make arrangements or renovations in the home.‎

‎The universe of family debts is composed of debts with banks (personal, pledges, mortgages and credit cards), with companies that grant non-bank loans, from‎‎ ‎‎ ‎‎ fintechs‎‎ ‎‎ ‎‎ that give cash advances to a single firm to household appliance or consumer chains that they finance with their own credit cards; and also outstanding balances with schools, prepaid medical companies, taxes or services.‎

Interviewer here