These are the 6 most common debts of the Spanish
Have you ever considered what are the most common debts of Spaniards? For practical purposes, debt is just the opposite of saving. If saving means future consumption thanks to present income, when we get into debt what we are doing is bringing money from the future to spend it in the present . The debt is, therefore, an obligation of payment that we contract with the intention of making a present consumption thanks to future income.
The debt provides us with an immediate disposition of money, which allows us to increase our purchasing power, solve emergencies or improve our standard of living . The problem, however, is that it is about someone else’s money that we will be obliged to return in an agreed period and at a pre-established interest rate.
The 6 most common debts of the Spanish
- Mortgage loans These are loans associated with the acquisition of a home, which supports the payment of the same. This means that if we do not pay the debt, the bank stays home. The repayment term of this type of loans can reach 40 years and the current average interest rate according to the INE is 3.14%.
- Personal and consumer loans . They are the most common loan contracts, along with mortgages. They are usually earmarked for specific expenses such as the purchase of a vehicle, a trip, studies, a home repair … The repayment term of these loans is up to 8 years and most banks offer them at an interest rate of around 6 years. or 7%.
- Credit cards . One option that credit cards have is to postpone payments to the bank by paying fixed monthly installments, as if it were a loan. So, for example, we can use 2,000 euros of our credit card and return it in several installments. Logically, the longer we take to return it, the more interest we will pay.
- Cards of other establishments . They are similar in operation to credit cards, only they work exclusively for the business that issues them. They are very popular and aim to build customer loyalty. El Corte Inglés, Mediamarkt, Zara … Almost all large companies have one.
- Discovered in the bank account . They are also known as “red numbers” and they occur when we spend more money than we have in our bank account. For example, if we have 300 euros and we buy something worth 350, the discounted account is 50 euros.
- Microcredits Fast credits or microcredits are granted for low amounts and are usually returned in a very short time, with few steps and commissions. In Vivus we offer you up to 300 euros without interest and without commissions, and if you are already a client we give you up to 1,000 euros with total security, transparency and no small print. In addition, we transfer the money in less than 15 minutes and you can do all the procedures online, without endorsement and without paperwork.