Introduction
If you’re not planning to save or moderate your spending during the holidays, there’s a strategy that can prevent January from crushing your finances: debt consolidation.
What is Debt Consolidation?
Debt consolidation is a financial strategy that involves paying off two or more debts with a single loan that has a lower interest rate than what you’re currently paying.
Luis Rubén Chávez, CEO of the fintech yotepresto, advises: “The most sensible thing would be not to overspend during the holidays. But if you’re not going to do that, the second best thing is to get rid of your outstanding debts before January arrives with property taxes, car insurance, and school tuition.”
Why Consider Debt Consolidation Now?
According to data from Mexico’s Bank of Mexico (Banxico) and financial analysts, the upcoming challenges in January could be more complex than previous years due to rising inflation and increased taxes that will make goods and services more expensive.
Key Advantages of Debt Consolidation
Through consolidation, you can pay off credit card debts and bank loans with lower monthly payments and interest rates, potentially saving more than 50% on interest.
Another significant advantage is eliminating variable-rate debts, like credit card rates, and locking in a fixed rate. This ensures your debt won’t keep growing indefinitely over time.
Yotepresto: A Closer Look
- Yotepresto is an authorized, regulated, and supervised fintech by Condusef, the National Banking and Values Commission (CNBV), and Banxico.
- With over 4 million users, Yotepresto offers loans up to $425,000 Mexican Pesos with annual rates starting at 8.9%.*
- For more information, visit their official website.
*CAT PROMEDIO: 26.05% excluding VAT. Calculation date: December 15, 2025. For informational and comparative purposes only.
Key Questions and Answers
- What is debt consolidation? It’s a financial strategy that combines multiple debts into one loan with a lower interest rate.
- Why should I consider debt consolidation before January? To avoid potential financial strain caused by increased inflation and taxes in the new year.
- What are the benefits of debt consolidation? You can save on interest, simplify your payments, and secure a fixed interest rate to prevent debt growth.
- Who is Yotepresto and what do they offer? Yotepresto is a regulated fintech that provides loans of up to $425,000 Mexican Pesos with competitive annual rates starting at 8.9%.
