Jul 08

Getting into debt to pay off debts: when it’s appropriate and what the risks are

As recently revealed by the Central Bank (BCRA) in its report on banks, in April the default on debts contracted by families for the consumption of credit and personal cards increased, compared to last March, going from 2% to 2.5%.

Faced with situations like these, most of the time the only alternative many find to get out of this suffocating state is to go back into debt to pay off overdue debts,which means a vicious circle with even higher costs

“While in May 2020, the application for loans to cancel debts reached a total of 41.5%; a little more than a year after the start of the pandemic, practically the average remains quite close with 39%, “said Florencia Valdes, Marketing Manager of Ixpandit Fintech Factory, a company dedicated to providing digital loans through its service Adelantos.com.

Interviewer here