"Practice makes the master" and "Failure makes professionals". I always have these two quotes on my head; I am not afraid of doing mistakes. But what does this have to do with my documentary?
Well it actually has A LOT to do. As you may know, Peru is a developing country meaning that there is lack of financial education especially in the poorer areas of Peru. Yesterday, with my IA partner, I went to Villa Maria del Triunfo to film in Carsa, an electronic store.
Well it actually has A LOT to do. As you may know, Peru is a developing country meaning that there is lack of financial education especially in the poorer areas of Peru. Yesterday, with my IA partner, I went to Villa Maria del Triunfo to film in Carsa, an electronic store.
On Villa Maria del Triunfo, we got to see one of the least economic developed areas of Lima. We were lucky enough that when we got to Carsa, a client was just receiving her Credit Card and was buying a stove. I say that we were lucky because it is not common to find a client getting a credit card; we decided to interview her. I remember that she told me "I have been fooled around two times by banks and their interests. I said that I would not get a credit card ever again but I saw a commercial about this offer and it was just valid if I had a credit card; I am risking it. I have learned through my errors and now I know what I am doing, I cant buy more than what I earn".
Common Error:
There are types of loans for every need, for example, for short-term purchases and travel, a credit card can be an appropriate solution, but to furnish your home, a personal loan is a better solution. Requesting a credit different from their income money is a mistake, because it makes us vulnerable to increases in the dollar. It is also an error to set payment dates, that do not match the dates on which one receives their income. Taking a loan without comparing options is a mistake that can cost you far more even if by a significant amount, as a mortgage or vehicle loan.
There are types of loans for every need, for example, for short-term purchases and travel, a credit card can be an appropriate solution, but to furnish your home, a personal loan is a better solution. Requesting a credit different from their income money is a mistake, because it makes us vulnerable to increases in the dollar. It is also an error to set payment dates, that do not match the dates on which one receives their income. Taking a loan without comparing options is a mistake that can cost you far more even if by a significant amount, as a mortgage or vehicle loan.
How can we help?
PLAN:
Its important that if you are going to buy gifts for mothers day, christmas, a birthday, etc that you go check stores to check if the prices of objects, gifts, etc match with your budget. This is done especially to see if you have the right amount of money or if your family will need to help you pay if its a family gift or if you are going to need to take a loan. If you take loans near important days the interest rates will be higher, thats why it is recommended to go and check stores before.
Its important that if you are going to buy gifts for mothers day, christmas, a birthday, etc that you go check stores to check if the prices of objects, gifts, etc match with your budget. This is done especially to see if you have the right amount of money or if your family will need to help you pay if its a family gift or if you are going to need to take a loan. If you take loans near important days the interest rates will be higher, thats why it is recommended to go and check stores before.
AVOID TAKING OUT MONEY FROM YOUR CREDIT CARD:
Taking money from your credit card is only for emergency`s! This is because they have the highest interest rates from the whole market. You can pay with your credit card on restaurants, stores, etc but try not to take cash. If an important day is close and you forgot to pay something avoid taking out cash, interest rates will eat you.
Taking money from your credit card is only for emergency`s! This is because they have the highest interest rates from the whole market. You can pay with your credit card on restaurants, stores, etc but try not to take cash. If an important day is close and you forgot to pay something avoid taking out cash, interest rates will eat you.
EVALUATE PAY OPTIONS:
After you know what product you wish to buy; you have to choose the best paying method. This method could be: through cash, credit cards, personal loan, etc. If you are going to buy a big product and you don`t have the money at hand it is better that you get a personal credit since the interests are lower than a credit card. If you chose to pay with a credit card, make sure that you chose the least number of quotas so interests are smaller. Remember, try not to pay only the minimum of your loan because you will only be paying interests and very little of the actual loan, try paying a little more so you don`t end up paying more money than you should be on the long run.
After you know what product you wish to buy; you have to choose the best paying method. This method could be: through cash, credit cards, personal loan, etc. If you are going to buy a big product and you don`t have the money at hand it is better that you get a personal credit since the interests are lower than a credit card. If you chose to pay with a credit card, make sure that you chose the least number of quotas so interests are smaller. Remember, try not to pay only the minimum of your loan because you will only be paying interests and very little of the actual loan, try paying a little more so you don`t end up paying more money than you should be on the long run.
Some tips?
ACCOUNT MAINTENANCE?: Something that agencies, banks, etc could be telling you is that “They don't charge account maintenance”. This could seem as if other entities did charge account maintenance which is false since the SBS already prohibited that. This means that no entity charges for credit card account maintenance. | MONTHLY INTEREST VS ANNUAL INTEREST: You have to be careful when people offer you different types of interests. Dont judge the interests only by the number, see what`s behind, be an observer. Be careful and study the monthly and Annual interests. Someone could offer you a 1% interest per month, while someone offers you a 10% annual interest. If you judge the numbers you will chose the 1% and lose money, be careful! |
SBS: SUPERINTENDENCIA DE BANCA, SEGUROS Y AFP:
Vision: Being a supervisory and regulatory institution recognized worldwide, applying international standards and best practices, based on the skills of its human capital.
Mission: Protect the public interest, cautioning stability, solvency and transparency of the monitored systems and promote greater financial inclusion and contribute to the prevention and detection system for money laundering and terrorist financing.
Vision: Being a supervisory and regulatory institution recognized worldwide, applying international standards and best practices, based on the skills of its human capital.
Mission: Protect the public interest, cautioning stability, solvency and transparency of the monitored systems and promote greater financial inclusion and contribute to the prevention and detection system for money laundering and terrorist financing.