The arrival of September 1 will mark not only the return to work and school, but also the beginning of a new reality for many Spaniards: facing the consequences of summer debts. According to the report, thousands of citizens will start to feel the effects of loans and credit card usage made during the summer to pay for vacations.
Between September and the beginning of December, people will have to adapt to their new payment reality. For many Spaniards, September 1 means starting to repay the money borrowed during vacations. The agreed-upon deadlines with banks and credit institutions will come into effect, resulting in a new monthly payment that could impact citizens’ economies.
Summer Vacations on Credit
José Vizner, economist and CEO of Negocios TV, stated that “half the country has gone on vacation this summer by getting into debt.” Now, it’s time to face the consequences, as the money borrowed must be repaid. The data indicates that in June alone, Spaniards accumulated a debt of €2,270 million, mainly due to loans and credit used to pay for vacations.
Related: Digi launches WiFi 7 routers with 2 Gbps
Many families have opted to get into debt to enjoy their summer vacations, but this means facing the harsh reality of repaying the money. The situation is alarming, and economists are concerned. Vizner mentioned in a video that “half the country has gone to the beach with money they don’t have. Vacations on credit. This is the largest monthly jump in the entire historical series of the Bank of Spain.”
Consequences of Debt
The situation is critical, with €16,762 million in consumer credit accumulated between March and June, a 12% increase. The problem is not only the amount of debt but also its purpose. Many people are using credit to cover basic needs, such as paying bills or refinancing existing debt. The banking sector is taking advantage of this situation, offering pre-approved loans and financing options, even in travel agencies.
Vizner criticizes the banks for not promoting financial education and for taking advantage of citizens’ needs. He explains that “with mortgages, they earn a 2% commission, while with consumer credit, they earn between 5% and 8%.” The economist demands changes in the country and more “financial culture” to prevent similar situations in the future.
Related: What Are The Benefits of Upgrading From Shared To VPS Hosting?
The consequences of summer debts will be felt in the coming months, with new monthly payments and the approach of December.
It is a new monthly payment.
