The rise of the dollar directly affects the financial life of people, whether or not they incurred debts in this currency. Despite the decline of this Friday, the increase of the US currency exceeds 6% since December and the effects of this increase generate unrest in the population.
Rodrigo Nadal, director of Solve Your Debt, explained that a person whose debt is in dollars and with a variable interest rate, is subject to paying the difference of the exchange rate on the initial debt and also the debt itself can increase proportionally to the rate increase.
"Given this situation, we recommend trying to end the debt as soon as possible and not acquire a new one," he said. And recommended that in case a new credit is necessary or inevitable, look for the one with a fixed rate. "A good strategy for the appreciation of the dollar does not stick in our pocket is to change our consumption habits to national product goods," he added.
In this context of rising dollar, people who have debts with national currency are also affected since there is a direct relationship with the cost of living. In the event that a person's basic consumer products are of foreign origin, the rise in the dollar directly leads to a rise in their prices, and therefore in the cost of living that translates into more inflation.
It also warns that the acquisition of a personal credit also becomes more expensive with the increase of the currency, considering that it increases the interest rate and decreases the ability to pay.
• What to do if your debt is in dollars?
The specialist explained that the first step is to renegotiate the debt. For this you can go to the institution with which the debt was generated and advise on the options available such as: that the institution carries out a pesification of the debt in dollars, that the bank increases the interest rate of the loan to cover Negotiating or increasing the term to cancel the debt, which will generate more interest.
• What to do if your debt is in pesos?
In the case a debt in local currency is three recommendations were given:
Consolidate the debt: There are institutions that are willing to consolidate your debt and offer you new payment terms. It is important to confirm that the conditions offered to you improve your current situation, so as not to continue generating new obligations.
Conduct a consultation with an expert in finance: On the other hand, if the amount is unmanageable and you fell into arrears, advise with experts to analyze your status and find solutions tailored.
Get ready for an emergency: Solve your debt always recommend having an emergency fund to help you pay for your personal and business expenses for at least six months.