Why do the Spanish go into debt? These are the three most frequent reasons and how to deal with them

Asking for a loan to pay for the purchase of a home, car, dental appliance or studies is a common practice. Most families know how to manage their repayment to avoid over-indebtedness, but the Covid-19 crisis has caused many other households to find themselves empty-handed and with a heavy backpack of debts on their backs. As in the 2008 crisis, Thousands of Spaniards have now entered a spiral of red numbers from which they will not be able to get out without help. The shame and fear of being judged for their critical economic situation are barriers that those affected have to overcome in order to access the lifeline of the Second Chance Law, a mechanism with which all debts can be exonerated if they are complied with. a series of requirements.

Why do we go into debt?

But before solving the problem you have to find its root. Luis Miguel Díaz, legal director and bankruptcy mediator at Deudafix, the fastest growing personal insolvency provider in Spain, explains the three most frequent reasons for indebtedness in Spain: