Using the Mexican Tradition of Tanda Savings to Get Out of Debt

My sister stopped by the house that was a few minutes from her home. “Isn’t going to take a minute. I have to pay my tanda.” Without a further word, she left, knocked at the door, and was back in less than 2 minutes.

“What the heck is a tanda?” I asked her. “It is a rotating savings. The tanda that I am in has 10 people. So, everyone puts money in, and every 10 weeks, you get the money. Sometimes, people do a tanda non stop, other times, it is a one time thing. I save for everything with the tanda.”

“So, there is no extra money?” I asked. “No, but because you are a part of a group, you are accountable to the group. You don’t ever want to screw up in your tanda. Word spreads fast, and it is not good.”

I was intrigued. I was always saving for this or that, but life would get in the way, and I sometimes would not meet the goal. It frustrated me.

I called my sister. “I want to be in your tanda.” I said, excited. “My tanda is in the middle. When it is over, if there is a slot, I will let you know. This tanda is 1000.00, so the pay is 100.00 every week, in cash. If you cannot commit, don’t sign up, because I will be the one vouching for you. If you are interested, start setting the money up now, because you want to have the tanda set aside.” I agreed and hung up.