Overpayment of current credit obligations

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“Family 500+” is a program thanks to which, according to the estimates of the Ministry of Family, Labor and Social Policy, approximately 2.7 million families in Poland will receive additional funds. In total, in 2016, about 3.7 million children will receive such support, which only this year translates into about USD 17 billion of additional money going to trading.

Additional funds can be used in several ways, such as overpayment of current credit obligations, current expenses for children, incurring new credit obligations, building capital (savings) for children. It is important to carefully analyze the current need and use resources rationally because the future of the 500+ program is uncertain.

Overpayment of current liabilities

bank

Additional funds in the amount of USD 500 can be used to overpayment obligations that the customer currently has. This gives you the opportunity to repay loans faster, thanks to which the stability and financial certainty of the family will be improved.

Current expenses

A regular injection of cash can also be used for current expenses, such as a new jacket for the child, school supplies and the financing of school trips.

Incurring new credit obligations

Incurring new credit obligations

Another option, which gives us an additional regular income of USD 500, is the possibility of taking additional loans. In some banks, this amount is included in the creditworthiness, thanks to which it becomes possible to incur higher liabilities or credit limits.

However, before deciding on a new loan that can be repaid with a government program, it should be taken into account that the program has now been adopted for four years. It is not known whether it will continue. The extra money may stop affecting the account, and the loan installment will remain.

Capital building (saving)

When the customer has no savings, and this applies to about 60 percent of people in Poland (“Social Diagnosis 2013”), it is worth considering the allocation of these additional funds to build capital for the child. Putting aside money for the so-called rainy day, or finally for a better start into the child’s adulthood.

If you regularly put off the full amount for 18 years (you are entitled to a benefit up to this age of the child) you can get the amount of USD 108,000, which gives you the amount to start studying in a foreign city or the beginning of an “adult” life.