Post-holiday budget crunch could last until March

Lack of financial planning, and spending more than you can afford are the main reasons for this year's lengthy period of financial stringency
A credit card can help you buy necessary items, but if you don’t want debt, you must pay the full amount on time -Photo: Elise Amendola/AP Photo
16/01/2018
17:14
Rubén Migueles
Mexico City
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The post-holiday budget crunch is a period of financial stringency after Christmas expenses and annual bills which are usually paid in January, yet this year it could last until March.

According to a survey conducted by the company Resuelve tu Deuda (End your Debt), people who spent more than they can afford during the past holiday season may recover their financial stability until March, yet there will be cases in which people will recover their financial stability until the first semester of 2018.

The buy-now, worry-later habit, lack of financial planning, and spending more than you can afford are the main reasons for this year's lengthy post-holiday budget crunch landing more and more Mexicans each year in debt.

"Events such as the post-holiday budget crunch test the ability to adapt and prioritize expenses, crucial skills to overcome the financial crisis or even to avoid violating economic capacity resulting in debt accumulation for a prolonged period," assured Kathy Quintero, spokeswoman for Resuelve tu Deuda.

Through a statement, Quintero acknowledged that it is thought that young people do not know how to manage their finances, they are irresponsible with their purchases and they even ignore the consequences of using credit cards.

However, she said that is not entirely true, because, despite their areas of opportunity, millennials are optimistic about their economic situation and they are even willing to improve it.

According to the survey, millennials are concerned with paying off a large amount of credit card debt—reaching up to MXN$ 100,000 on average—at the beginning of the year, followed by expenses in transportation, services, and rental housing. 

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