Here are 5 ways to make sure you don't ask for a loan again after returning to school.

Here are 5 ways to make sure you don’t ask for a loan again after returning to school. school

Families will pay more than 5,000 pesos per child for uniforms, sneakers, shoes and school supplies.

Grow Your Business,
This is not your inbox

Keep up to date and sign up for our daily newsletter!

Read for 4 minutes

This article was translated from our Spanish edition using AI technologies. This process may cause errors.

Opinions expressed by Entrepreneur contributors are their own.

Next Monday, August 30, in Mexico Republic will see the start of the 2021-2022 basic education year. After a gap of over a year, students will be able to return to their classes face-to-face. Mothers and fathers will need to spend a lot to provide for the children’s needs.

The National Alliance of Small Merchants(ANPEC) estimates that families will spend over 5,000 pesos per child to return to school. This includes the costs of school uniforms, footwear, clothing, books, and fees.

You should also consider that parents spent a lot of money to purchase computers and other equipment during the school year so students could attend distance learning classes. Many times, they had to also hire internet service providers to help them learn.

Avoid asking for a loan

It can be difficult to return to school. Therefore, those responsible for managing the family’s finances need to explore other options to help meet their needs without making compromises.

A loan obtained without considering past indebtedness can increase existing debt and make it more difficult to repay it. This can result in a low credit score that can limit your ability to access financing later.

According to fintechs Coru and Solve Your Debt, these are 5 tips to avoid a loan before going back to school:

Approach an expert . Parents often have to pay a lot of money to go back to school. Instead of getting a loan for debt repayments, you can consult experts to help you make an affordable payment plan.

Consolidate debt . People often make the error of borrowing money to repay their debts or paying off one credit card after another. Consolidating debt is a good way to get out of such a situation. This means the different debts, whether they are credit cards, loans or credit cards, can be consolidated into one payment. It is crucial to consolidate the debt with the lowest interest rate so that it can be paid more easily.

Financial education . Financial education helps users to understand the benefits and risks of financial products and services. Good financial education can help people save more and make smarter investments, manage their credit more effectively, lower their debt, and live a more fulfilling life.

Here are 5 ways to make sure you don't ask for a loan again after returning to school.

Parents have to pay a lot for their children’s return to school. Image by Enrique Alfaro via facebook

Create a budget Make a budget before you apply for new loans. This will allow you to determine your net income as well as your fixed expenses. This exercise will help you identify where you’re spending too much and which items you could save. Focus on debt repayments and review your priorities. To avoid paying late interest, make sure you pay your debts according to the terms agreed upon.

Search for new income It can be a trap to go into debt in order to pay off debt. It is crucial that you have more income and reduce your debts if they exceed your financial ability. There are many options available to you, including freelance or working overtime. You may also consider a temporary second job.

Here are 5 ways to make sure you don't ask for a loan again after returning to school.

Publited at Fri, 20 August 2021, 11:05:46 +0000

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.