The ‘back to school’ triggers loans

The Spanish have two required dates on the calendar. And there are no months that cause more fear to families than January and September. The so-called ‘January cost’ and the ‘back to school’ entail a series of extra expenses that not all family nuclei can easily face. And it is precisely on these dates when we most realize that in Spain more is spent than what is entered annually. How to deal with this situation? Most choose to request loans or bank credits . A recent study by Wingfield family and the National Statistics Institute (INE) confirms this.

How much do families spend annually?

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27,419.52 euros. This is the official figure of the average annual expenditure of Spanish families. This amount includes coverage of basic needs such as food, housing, health or education. These numbers also contrast with the amount that is usually entered on average in Spain. As indicated by the data collected by Wingfield family, the income that families receive on average annually amounts to 26,259 euros. And if the difference between both amounts is calculated, it is observed that a Spaniard spends about 1,200 euros a year more than he receives.

How is that possible? Does family accounts stay in red numbers? Not quite. Many have become accustomed to applying for bank loans or microcredits to continue maintaining a certain standard of living. In September, for example, the number of monetary requests usually increases by 10%.

Where do they spend more and less?

Where do they spend more and less?

The cost of the products and the standard of living of each Autonomous Community have a great influence when it comes to knowing in which regions the Spaniards are more ‘wasteful’ and in which more saving. There are those who believe that in the capital, Madrid, and in the second largest city, Barcelona, ​​much more is spent per year than what is entered. That is true, but there is a community that surpasses them and that is the Basque Country.

The Basques , with 33,318.44 euros on average per year, are the nationals who spend the most, followed closely by Madrid, with 31,532.12 euros of annual expenditure, Catalonia, with 30,175.37 euros or the Balearic Islands, with 29,400 , 95 euros. As you can see, all of them are regions with a significant number of inhabitants and where prices are higher than in other areas of Spain.

In contrast, those who spend less per year are residents in Extremadura, with only 22,493.50 euros or the Canary Islands , with 23,372.14. In the latter, the fact that the items are sold without VAT may influence.

What is the money invested in?

What is the money invested in?

With the arrival of September, parents cannot avoid their children’s need to acquire textbooks, school supplies, transportation and even clothing. Within this annual expenditure that families make, the investment of an average of 380.22 euros per year in education stands out. This includes the payment of tuition and school supplies, among other issues, although it would set aside public transport and clothing, which would increase the budget. As many cannot cope with these types of payments after the holidays they resort to mini-credits.

On the other hand, when the time comes to complete the clothing , an annual disbursement of 1,395.27 euros is made, for which online loans are used and if we add to that the transport , whose annual disbursement is 3,158.07 euros and that is financed above all with personal loans, the amount of money that will have to be returned exceeds several thousand euros to what the average Spanish enters for their income from work.

Tips for requesting a loan

Tips for requesting a loan

In this sense, from the Wingfield family portal it is recommended to follow a series of guidelines when applying for loans. For example, it is not advisable to go to a bank to ask for more than 10,000 euros if you are unemployed, if the net income does not exceed 1,000 euros or if the money is going to be used in cancellations or refinancing. They also ask to study the opening and study commissions well, take into account the insurance offered by some financial institutions that are, sometimes, a mandatory requirement to apply for the loan, read the advance payment conditions and the costs in case of default , in addition to keeping in mind that the amount to be paid must be added the monthly fee and the opening and interest costs applied.

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