Saturday, January 4, 2014

Many Mexicans heavily in debt, with no way to pay

The bill collector cometh

Guadalajara -
Credit card bills or notices of loan payments due are not unusual in many countries this time of year. Nor are default notices. Mexico is no exception.

Two Mexican federal agencies, the National Bank Commission and the National Commission for Protection Against Usurious Finance Charges, have reported that the number of consumer loans in arrears tripled in 2013, with one of every nine individual debtors (11%) now in some degree of default.

"The increase in such defaults on personal loans demonstrates the problem of insufficient incomes in many households, and the over indebtedness of many Mexican families," noted CONDUSEF.

Mexico's new minimum wage law took effect three days ago, but it will have almost no impact on the lowest paid wage earners when 2013 inflation (3.86%) is factored in. Mexican minimum wage in 2014 will be $5 dollars - a day.

In July a Mexican government agency reported that 53.3 million people live in poverty. That represents 45% of the nation's population of 118 million. Mexican population is soaring, and most are young.

Another July 2013 study conducted by researchers at the University of Guadalajara found that 60% of Jalisco state residents earn less than the monthly cost of the minimum "consumer basket" of foodstuffs and basic household necessities. MGR reported those results here: "They can't eat."

Jan. 5, 2014 - U.K. report: life is getting harder, not easier for Mexicans
Mar. 16, 2013 - Huge cost of consumer credit in Mexico is going up again

Dec. 23 - PEMEX reforms will bring 500,000 "high quality jobs" to Mexico, says energy secretary
Dec. 7 - Sluggish labor market a victim of Mexico's economic backslide in 2013
Oct. 12 - In a land where many are poor, Mexican millionaires are increasing by leaps and bounds
Nov. 26 - Mexico's economic woes take a toll on Yucatán business
Aug. 24 - Mexican unemployment stats paint a bleak picture for the most well educated
Aug. 21 - Sluggish Mexican economy worries foreign investment experts
Feb. 20 - Mexico has 14th largest global economy, but citizens rank 81st in food purchasing power

Nov. 16 - Gross economic disparity still a hard fact of Mexican life
July 29 - Yucatán has well-educated labor force, but offers one of Mexico's worst job markets
Apr. 23 - AMLO: Economic inequality is the primary cause of Mexico's insecurity

© MGRR 2013. All rights reserved. This article may be cited or briefly quoted with proper attribution or a hyperlink, but not reproduced without permission.

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