Loans, even to cover monthly expenses?

To face financial vulnerability, which is the inability to cover their expenses after experiencing a loss of income, 53% of Mexicans requested loans from family or friends, revealed the National Survey of Financial Inclusion (ENIF 2021).

Likewise, 86% used their savings and reduced them, 20% pawned or sold goods, 19% requested a salary advance and 12% requested or used a formal loan.

On the other hand, the ENIF 2021 stated that to face the impacts of COVID-19, 95% of the affected population reduced expenses, 79% used savings, 40% requested loans from family members, 18% pawned or sold goods, and 28% % was late in credit payment.

In fact, only two out of 10 credit card holders did not use them because they do not like to get into debt (37%) or because they only use them for emergencies (34%), which suggests that a significant part of the population in Mexico it doesn’t see credit cards as tools to make it easier to make and manage payments.

In this sense, Paynom warned that, according to a Paynom analysis, 45% of Mexican workers express that money is the number one cause of their financial stress, in addition to the fact that one hundred out of 10 feel overwhelmed by their situation. finances or their debts, while 20% admit to having missed work at least one day in the year to solve a financial problem.

However, he stressed that in response to Mexicans who often resort to family loans or expensive credits to finish the fortnight or face economic emergencies, app-based payroll advance platforms have arrived from the financial technology industry that allow workers 24/7 access to your salary before the payday established by your employer.

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“Today, for many workers, payroll advance platforms represent a lifesaver that prevents them from immersing themselves in financial stress and helps them pay for services such as electricity, water, internet or cable TV, buy medicines or air time, even make transfers and payments with QR Code”, indicated the firm.

For the CEO of Paynom, Aroldo Dovalina, the ideal is for Mexicans to explore new tools that allow them to access their salary without having to resort to credit or borrow from family and friends.

“For example, payroll credit is not the best alternative to face economic emergencies, especially when you only need small amounts of money. Let us remember that in this type of credit the payments are automatically deducted from the bank account where the payroll is deposited and to access it an opening commission, life insurance and even unemployment insurance are charged, hence it is important to reflect before of committing to a loan that can be too expensive”, he pointed out