When the financial crisis hit in 2008, Spanish families had accumulated over €960 billion in debt. The debt gradually improved during the crisis until 2017, when the figure stood at €3.063 million (according to the National Statistics Institute). This figure almost quadrupled last year, reaching €14,8 billion.
This can be interpreted in two ways: positively and negatively. The first interpretation is that banks have started lending again, while the second suggests that families have started to go back into debt. What's certain is that its easy to fall into a spiral of debt, but much harder to get out.
If you find yourself in this situation, you must understand from the very beginning that there are no miracles. However, there are tools that can help you to manage and reduce your debts. At BBVA, we want to explain the snowball method (or waterfall method), a system designed to help you manage this difficult task.