The healthiest option is to always carefully review your fixed income and expenses and budget so you know how much you have left to pay off your debt. Based on this data, we can reduce unnecessary or one-time expenses and use this amount to pay off debt.
To do this, you need to know the level of your debt, that is, you need to cancel the calculation of how many loans or debts are not repaid. With the digitization of banking, this task has almost accelerated. In the case of BBVA, the mobile app allows customers to view their outstanding debts, as well as the financial effort involved in paying off those debts, and how much debt they can reasonably take on.
If budget adjustments are not enough, there are various options for refinancing or repaying our loan. They all have advantages and disadvantages that need to be carefully weighed.
What options do we have for dealing with debt we cannot afford?
Debt Reconciliation: This includes grouping all the debts and mortgages that we have negotiated. In other words, all loans are collected and discussed with the bank to approve new loans with lower monthly payments due to increased payments. Returning to this decision, we assume an increase in the cost of the loan because we pay interest over a longer period of time.
Refinancing a loan: This allows you to pay smaller payments, but as in the previous case, the longer the repayment, the more expensive the loan.
Apply for another 대출 in addition to the one who gave us the first one or enter into an agreement with the bank to exchange the loan for another organization that can offer better conditions, such as benefits, by changing the conditions. Operation, revision period, etc. The last option, known as subrogation, is more common in the case of mortgages.
Debt between family and friends: When choosing this option, it is convenient for individuals to sign a loan agreement that reflects all the conditions that govern it, as these loans can be free or beneficial (with interest). In some countries, such as Spain, these loans are subject to property tax, although they are currently exempt from taxation.
Economic Health, BBVA Strategic Priority
Good personal, family or professional financial health requires the ability to cope with unforeseen events and plans for the future.
BBVA believes that improving economic well-being should be available to everyone, and therefore; Economic health is one of the six strategic priorities. The organization aims to help individuals and companies on their path to financial well-being with personalized solutions, motivating and empowering them to improve their mind and safety.
BBVA sees financial health as a four-step journey that starts with daily maintenance, continues with savings, progresses with debt management, and ends with planning for the future. To keep customers on this journey, a variety of tools are offered through the mobile app that combine the power of technology, data, and the expertise of a team of people.
In terms of debt management, BBVA wants to help clients understand how much they can borrow and what product is best for the goal they want to achieve. To do this, it always provides up-to-date information about their creditworthiness, the allowed maximum level and the current state of their credit. In this way, the client can understand what is the limit of a responsible and sustainable loan that he can take on.
