Now it is the turn of this element, which must be considered and taken into account. Who does not know about debts? Who has not contracted some debt in their life? I dare say that almost all of us have done so at some time. But why is this element important in financial education?
Although it may not seem necessary to define it, debts are resources that are owed to a person, a credit institution, a company or another, which must be paid on time and under the established terms.
Some different ways of getting them are: credit with and without time limit or mortgage, acquisition of goods or services on credit or paid with a credit card.
On the other hand, it is very important to be aware of the terms and conditions of each debt contracted. If they are individual or joint, that is, if the debt was contracted as a couple, because if one of them is responsible and were to die, the debt disappears. Otherwise, it must be paid, no matter what.
Silva (2020) classifies debts into:
1. Consumer debts. Those incurred when purchasing goods or services paid for with a credit card (purchase of a car, refrigerator, electronic devices, clothing, footwear, vacation trips, etc.).
2. Subsistence debts. Those incurred to cover basic needs (rent, illness, water, electricity, telephone, internet, food, etc.).
3. Investment debts. Those acquired when purchasing goods or services that become more valuable over time (credits for the acquisition or construction of property, opening a business or carrying out studies).
4. Small debts. Those paid with a credit card due to small expenses, which are small but end up becoming significant amounts that can unbalance the budget.
It is recommended to make it possible by convincing ourselves that we should avoid getting into debt as much as we would avoid getting sick, says White (2021). To achieve this, CONDUSEF (2022) recommends:
Learning to say no.
Don't get carried away by advertising, fashion, etc.
Do not let ourselves be convinced by others.
Prepare a family budget.
Don't miss the second installment of this topic!
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