This tool lets you know if you can get into more debt

2024-08-30 08:44:30

Currently, the indebtedness both at individual and family level has become an increasingly common reality. The ease of access to credit, consumerism and the search for a better quality of life have driven this phenomenon. However, Getting into debt irresponsibly can have serious consequencessuch as over-indebtedness, default and deteriorating financial health.

According to official dataas of June 2024, the balance of the debt consumption of Ecuadorian families reached USD 11.149 millionwhich represents a 8.5% increase compared to the same period last year.

In this context, the Superintendency of Banks of Ecuador has developed an online tool called “How far can I go into debt?”, which aims to Helping people make informed financial decisions on the acquisition of new credits.

The tool allows you to know the current level of indebtedness y determine whether you have the capacity to assume new obligations without putting financial stability at risk. To do so, you only need to access the Financial Education portal of the Superintendency of Banks

How to use this tool?

1. Access the Financial Education portal of the Superintendency of Banks: At the top of the portal, you will find a search bar. Type “How much debt can I get into?” and click on the magnifying glass icon. You can also find the tool in the “Resources” section, within the “Financial Planning” category.
2. Enter your financial information: You will be asked to enter your monthly income: This includes your salary, investment income, rent, etc. Your monthly expenses: This includes your housing payment, utilities, food, transportation, education, health, current debts, etc. Make sure you have your receipts, bills, and bank statements on hand to get accurate information.
3. Analyze the results: The tool will show you a percentage chart that reflects the distribution of your income between your expenses and debts. It will also tell you whether your current debt level is low, moderate or high, and whether you can take on new obligations without affecting your financial health.
4. Make an informed decision: Based on your results, you can determine whether you can take on more debt or whether you need to take steps to reduce your current debts.