As at the beginning of the year, extra expenses can compromise the family budget and lead to indebtedness. Bills such as property tax, vehicle licensing, school supplies, insurance, and other seasonal expenses arise simultaneously, creating a significant financial challenge. To prevent these expenses from becoming a burden, organization and financial planning are essential.
Financial planning is not about accumulating wealth, but about maintaining a balanced financial health to avoid unnecessary indebtedness. Many families fall into debt because they do not adequately prepare for predictable expenses such as those at the beginning of the year, which, despite being ‘shocking,’ are already part of the routine. Creating a financial strategy means planning the budget in advance, saving money throughout the year, and avoiding expensive financial solutions such as loans and high-interest installments.
Recent data indicate that by 2024, the percentage of indebted families reached record levels. According to the National Confederation of Commerce of Goods, Services, and Tourism (CNC), about 77% of Brazilian families are in debt, with a large part of these debts linked to credit cards, followed by financing and personal credit. The scenario highlights the need for greater financial planning and strategies to avoid excessive income commitments.
The main causes of indebtedness include high inflation, which reduces purchasing power and forces many families to resort to credit to cover basic expenses; high interest rates, which increase the cost of credit; and unemployment, which compromises the financial stability of many households. In addition, lack of financial education leads many consumers to make decisions without properly assessing long-term impacts. Impulsive spending, excessive installments, and the absence of an emergency fund further worsen the situation.
To avoid indebtedness and ensure greater financial security, some solutions can be adopted. Financial planning is essential, allowing families to track their expenses and adjust the budget as needed. Creating an emergency fund that covers at least three to six months of expenses can prevent loans in times of difficulty. Another strategy is to control excessive use of revolving credit and seek installment options without interest whenever possible.
In addition to these measures, contracting financial protection products helps prevent indebtedness. This type of protection ensures support in times of adversity. With these coverages, policyholders can rely on resources to maintain their basic expenses without resorting to loans or compromising their budget. Thus, smart use of these solutions helps maintain financial balance and provides greater peace of mind for Brazilian families.
Undoubtedly, protecting oneself financially is essential to avoid indebtedness and ensure a balanced financial life. Planning ahead, creating an emergency fund, and avoiding high-interest installment payments are fundamental steps to start the year without stress. Organization and discipline help keep finances in order and avoid financial worries in the future.
