Can’t afford to go back to school? Condusef has these 3 solutions

Because there are only a few weeks left until the start of the school year 2024-2025 of the Ministry of Public Education (SEP) for preschool, primary and secondary school students, the National Commission for the Protection and Defense of Users of Financial Services (Condusef) has given some Tips on buying school supplies.

It was in the August 2024 edition of the magazine Protect Your Money where the National Commission for the Protection and Defense of Users of Financial Services (Condusef) announced Three alternatives to finance the purchase of school supplies and uniforms for the return to school at the end of this month of August of the current year, according to the official calendar of the 2024-2025 school year of the SEP.

It is in this way that, according to the aforementioned document of the Ministry of Finance and Public Credit (SHCP), the following are the Best financing options in case you don’t have enough money for the start of classes in Mexico:

Personal or payroll credit

A personal loan is a loan that banks or other financial institutions offer to their clients based on their ability to pay and credit history. This type of loan usually does not require specific collateral, such as property or assets, and can be used for various purposes, including purchasing property, consolidating debts, or covering expenses such as back-to-school.

On the other hand, a payroll loan is a type of loan that is granted based on the applicant’s salary and is usually linked to a bank account where the loan is deposited (payroll account). The financial institution automatically deducts the loan installments directly from the applicant’s payroll, which reduces the risk for the bank itself and generally results in more favorable interest rates for the applicant.

If you are considering applying for one of these loans, it is crucial to understand how these loans vary in their payment method. Payroll loans are characterized by automatic deductions from your salary, which can be an advantage in avoiding late payments. However, this also implies a constant reduction in your monthly income until the debt is paid off, which is a factor to consider carefully before making a commitment. To learn more about them, we recommend that you go to the Bank of your choice.

Fonacot Credit

Fonacot offers Mexican formal sector workers loans with competitive interest rates, without charging opening fees or requiring a guarantor, providing payment facilities with automatic payroll deductions.

To have access to this financing, certain requirements must be met, such as having worked in the same place for at least one year, the company in which you work must be affiliated with the institute, having a permanent or full-time contract, and providing two personal references.

It should be noted, in this regard, that the The maximum amount that can be approved for you depends on your salary; the maximum credit amount is up to four times your monthly salary.. It can be paid in various monthly installments, but the maximum discount that can be made directly from your salary is 20% to be paid in installments ranging from 6 to 30 months.

Pawnshops

Finally, another financing option for this return to school for the 2024-2025 SEP cycle is pawn shops, however, although it may seem like a quick solution, It can be quite expensive if you don’t go to the right entity..

So before you go and pawn your belongings, it is important to take into account various aspects that will help you make an informed decision without compromising your financial well-being.

To start, it is essential to compare different options before pawning your belongings at the first pawn shop you find. Take the time to find the one that offers you the most money for your items, at a lower cost, that is, with a higher percentage of the appraisal value and a lower interest rate.

You should also consider the Total Annual Cost (TAC) when evaluating credit options; this indicator includes all associated costs such as the interest rate, commissions, appraisal and storage costs, among others. Use it as an initial criterion to compare and make an informed decision. Also, investigate the annualized interest rate that pawnshops handle. Some may have very high rates, presented monthly, biweekly or weekly to make them seem more accessible.

You should also ask what percentage of the appraisal value of your items they will lend you. This information should be clear before signing any contract, and you should compare several options to obtain the best conditions.

In addition, ask about the excess amount. This refers to the difference that the pawn shop must give you if your item is sold and its sale value is higher than the cost of the loan.

Finally, find out about endorsements. This indicates how many renewals you can make of the contract and whether there is a possibility of extending the original period to recover your belongings.

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