Debt and Credit: Managing Money You Borrow

This module covers one of the most misunderstood areas of personal finance: debt and credit. For many people in Mexico, the word “deuda” carries shame and fear. But debt is not inherently bad — it is a financial tool, and like any tool, it can build or destroy depending on how you use it. Understanding how credit works, how to use it responsibly, and how to recover when things go wrong is essential knowledge.

You will begin by learning what credit actually is and how the Mexican credit system works. You will understand Buró de Crédito and Círculo de Crédito, learn how your credit score is calculated, and discover how to check your credit report for free. You will also confront the most common myths — like the idea that “being in Buró” is something bad — and learn how to build credit from zero.

Next, you will take a deep dive into credit cards, the most common form of revolving credit in Mexico. You will learn how billing cycles work, why paying the minimum is a trap that can cost you thousands, and how to compare credit cards using the CAT. You will understand every line on your credit card statement and learn the golden rules for using credit cards without falling into debt.

The module then moves to debt management strategies. If you already have debt, you will learn how to assess your situation honestly, choose between the snowball and avalanche repayment methods, negotiate with creditors, and understand when debt consolidation makes sense. You will also learn about CONDUSEF resources and how to avoid reparadora de crédito scams.

Finally, you will explore the world of loans in Mexico — personal loans, auto loans, and mortgages including Infonavit and Fovissste. You will learn how to compare loans properly, what banks look at during the approval process, and when taking a loan is a smart decision versus a mistake.

By the end of Module 4, you will have the knowledge and strategies to use credit as a tool for building wealth rather than a trap that erodes it.