Goodbye to your savings: BBVA issues an important statement to thousands of customers

BBVA, one of the main banking entities in Spain, has issued a statement addressed to its customers. The bank has emphasized the importance of assessing borrowing capacity before applying for a loan.

The acquisition of high-value goods, such as a house or a vehicle, often requires financing through mortgage, personal, or secured loans. However, it is essential to consider what percentage of the monthly budget will be allocated to debt repayment and how much will remain available to cover other expenses.

BBVA reveals what you need to know before applying for a loan

One of the main concerns when considering a loan is determining the level of indebtedness that doesn't compromise financial health. BBVA highlights that borrowing capacity is the maximum amount a person can allocate to debt and interest payments without jeopardizing their financial stability. This indicator is essential for financial entities when evaluating the feasibility of granting a loan.

How to calculate borrowing capacity

To calculate borrowing capacity, it is necessary to add all monthly income and multiply the result by 0.35. The figure obtained represents the maximum amount that should be allocated to all debt and interest payments. For example, if a person has a monthly income of 2,000 euros, their borrowing capacity would be 700 euros.

BBVA offers tools that facilitate the evaluation of responsible borrowing. One of them is the borrowing calculator, which allows users to input their monthly income and debts to determine if they have the capacity to take on new debts. This tool is free, confidential, and easy to use.

Additionally, the banking entity has a monthly expenses calculator that helps users to know their income in detail. This tool allows breaking down expenses by type and knowing the additional savings capacity, regardless of the savings goal.

Steps to use BBVA's monthly expenses calculator

First, you need to record monthly income and expenses. Among the expenses are mandatory ones, such as existing debts, mortgage, rent, taxes. And the reducible ones, which vary according to consumption, like water, gas, electricity, transportation, etc.

There is also a final type of expenses, the variable ones. These can be reduced or eliminated, such as leisure activities, travel, or subscriptions to entertainment services.

By completing these steps, the calculator will provide a clear view of the additional savings capacity. Thus, it will help you identify areas where adjustments can be made to improve financial health.