Something few consider when drowning in debt: your house can be your best financial ally. No joke, especially after many lose control in December and that credit card bill arrives, hurting to look at.

Liquidity mortgage credit is gaining ground as the most sensible option to organize finances when you have expensive commitments. Why? Because the interest rates are completely different. While a personal loan charges up to 50% interest and a credit card easily reaches 120%, this credit ranges between 11% and 14%. It’s almost another world.

According to Romain Benenati, Deputy General Director of Creditaria Mexico, the key is that this financing is backed by a real asset: your home. It’s cheaper because the bank has collateral. The average of these loans is around one million pesos, and you can pay it off in up to 20 years. Banks generally approve between 40% and 80% of the property’s value.

What’s interesting is that after the pandemic, more people started seeking this option. Many needed to improve their homes during lockdown and discovered it was more feasible than other schemes. But here’s the curious part: in Mexico, around 135,000 mortgage loans are originated each year, and only 4% are liquidity loans. That’s little considering there are nearly 38.4 million homes in the country, of which about 60% are owned by those who live in them.

Benenati was clear: we still use credit cards because we haven’t communicated well that there’s a cheaper alternative. It’s a matter of evangelizing the product. That’s why Creditaria is deploying its network of over 2,500 specialized agents nationwide to help those who want to get through January’s financial hump with a financing option that really makes sense.

If you’re interested, the requirements aren’t complicated: good credit history, income compatible with what you’re requesting, and a property free of liens. The house must have current property tax, utilities, and maintenance. The best part is that this credit doesn’t generate taxes on property acquisition or additional liens, so the total cost is cleaner than other schemes.

The acceptance rate is quite high compared to other mortgage loans, precisely because you have collateral. If you’re considering reorganizing your debts this year, it’s worth exploring this option before continuing to pay rates that bleed you month after month.