Abstract
The objective of this work is to determine the debt index and identify the financial burden of households in Mexico for 2014 by using the data from ENIGH 2014. The hypothesis to be tested is that during the last few years, households in Mexico are accelerating their dependence on debt to satisfy their consumption and housing needs, which is added to disproportionate interest rates, considerably increases their financial burden, which in many cases slows down or leads to the bankruptcy of the economy of these households. The results indicate that households in the first three deciles are in unsustainable conditions and do not have the financial capacity to meet their expenses and debts, while households in the fourth, fifth and sixth deciles are at financial risk.
Highlights
Since ancient times, credit has been a common practice in society, since it speeds up the possibility of satisfying needs for food, clothing, shoes, housing, cleaning, health, transportation, education, recreation, etc., which in many cases is not within the reach of families, without them having to resort to options such as credit, at an extra charge, because of the interest rate they have to pay
The hypothesis to be tested is that during the last few years, households in Mexico are accelerating their dependence on debt to satisfy their consumption and housing needs, which is added to disproportionate interest rates, considerably increases their financial burden, which in many cases slows down or leads to the bankruptcy of the economy of these households
The results indicate that households in the first three deciles are in unsustainable conditions and do not have the financial capacity to meet their expenses and debts, while households in the fourth, fifth and sixth deciles are at financial risk
Summary
Credit has been a common practice in society, since it speeds up the possibility of satisfying needs for food, clothing, shoes, housing, cleaning, health, transportation, education, recreation, etc., which in many cases is not within the reach of families, without them having to resort to options such as credit, at an extra charge, because of the interest rate they have to pay. This work is important because until 2012 the main results of the first Financial Inclusion Survey (ENIF) were released, prepared on the initiative of the National Banking and Securities Commission (CNBV) and the National Institute of Statistics and Geography (INEGI), where for the first time, data on the demand for financial services at the national level has been released and credit is one of the most demanded, so it is interesting to know, what is the debt situation of households in Mexico, as well as their financial burden. To fulfill the objective of this research, data from the National Survey of Income and Expenditures in Homes (ENIGH) 2014 and the Financial Inclusion Survey (ENIF) for the year 2018 are used, and an index of indebtedness in the universe of homes in our country is integrated, highlighting from its origin, to the causes and risks involved in this phenomenon.
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