Black Friday and six tips to avoid succumbing to debt at the end of the year

2024 has undoubtedly been a year of great economic challenges for all Colombians, first due to the final blows of inflation, then due to high interest rates and a labor market that is not taking off; all this in the middle of a context where fiscal uncertainty made many fear for the stability of their finances.

However, with the arrival of December and its joy, many of these fears dissipate and taking advantage of payments such as bonuses or performance bonuses in many companies, people tend to indulge, in many cases compromising their finances and resorting to debt when the money runs out.

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Taking this into account, BBVA released six tips to avoid succumbing to debt in the remainder of the year, in which it highlights that although the euphoria of reuniting with family or going on a vacation trip, added to a sin end of offers, it can be a temptation, taking care of personal finances is an everyday task.

“With the Black Friday promotions and the Christmas season, it is common for several people to make impulsive purchases and affect their personal finances, falling into over-indebtedness to face the end of the year and the beginning of 2025. Therefore, the important thing is to maintain always adequate financial planning without compromising their economic stability,” they stated.

First of all, these experts pointed out that a realistic budget must be established before making any purchase, in which a spending plan is established that includes income, current financial commitments and what can be allocated to purchases or celebrations. To do this, digital tools such as financial control applications can be used to monitor your expenses in real time.

“The second thing is to identify essential expenses and avoid impulsive purchases.They are motivated solely by desire. Also, don’t spend more than you earn, as at some point your situation will no longer be sustainable. For this season, you can take advantage of the discounts on Black Friday and the Christmas season for the purchase of gifts, however, remember that not all promotions are real opportunities if they are not aligned with your needs,” they noted.

The third piece of advice to follow, according to these experts, is to avoid excessive use of credit cards, trying to make full payments (in one installment) or choosing a monthly installment that does not exceed your payment capacity. Likewise, they warned that during this season, excessive use of credit cards can give a false sense of liquidity, so they should aim to ensure that debts do not exceed 30% of income.

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“It is key to know the interest rate that applies month to month, as well as the cut-off date (day on which the billing period closes and the bank gives you a statement with what you must pay) and payment date (last day that you have to pay the minimum amount before you are charged interest) to pay off the card balances in a timely manner, take care of your history credit and avoid being reported to the risk centers for non-compliance,” they explained.

At BBVA they stated, as a fourth piece of advice, that “although promotions can be tempting, and you want to treat yourself to a gift or trip, it is suggested that you allocate a portion of your income to savings. This will allow you to face unexpected expenses and start next year with a solid foundation to achieve your 2025 financial goals, remember that each start of the year brings a price adjustment in goods and services.”

To avoid financial stress, remember to have an action plan to deal with debt and monetary emergencies.

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Another recommendation is to establish a payment schedule, which for them is a key strategy to maintain financial health and avoid additional costs due to late payment interest. Thus, they suggest scheduling automatic contributions to a savings account and in this way ensure a constant flow of resources intended to cover obligations.

“It is important to catch up with the payment of debts, focus on those with higher interests and even speak with the financial entities with which you are affiliated to find an agreement that allows you to make the payments that best suit you for this season, it is That is, renegotiate them,” they concluded.

These experts closed by remembering that good financial health is essential to project towards other aspects of the economy such as investment and economic growth and that letting yourself be carried away by debt is the path towards every day having to get up to work, so that the debts take over everything.