Financial experts offer strategies for managing personal debt

Financial specialists recommend specific strategies for families struggling with debt, emphasizing the importance of identifying all outstanding obligations before seeking new loans. Daniel Becerra Avendaño, a family finance specialist, suggests that debt becomes problematic when payments exceed an individual's economic capacity. He recommends that debt service should ideally not exceed 30 percent of net income.

Key steps for managing debt include creating a detailed inventory of creditors, amounts, interest rates, and monthly payments. It is advised to prioritize high-interest debts while distinguishing between short-term obligations, such as credit cards, and essential long-term assets like housing or vehicles used for work. Experts warn against using new credit to cover existing debts, as this often merely postpones the financial crisis.