Credit cards are one of the most used financing methods today. Some users choose the following options pay the minimum amount Provided by banking institutions. low cost or for a chance postpone debt.
If a person pays only the minimum amount, The remaining balance can be refinanced It runs automatically at a very high rate. In each case, you should check your account overview. Not only the rate but also total financial cost (CFT).
More Argentines are unable to pay their credit cards.
Another thing to keep in mind is penalties that apply to refinancing costs if you miss a payment. Therefore, it is essential to see Total financial costs.
Profile I consulted Adriana Czerwony, a tax expert from Parque Gestión Studio. He reported:Debts can double “If you maintain the habit of paying the minimum balance, it can even triple in a few months,” he added. “This is compounded, so the interest is capitalized and each month you are charged interest on the principal you have to pay plus the interest you have to pay from the previous month.”
Effects of paying the minimum amount on your card
The financial impact is first, but the credit impact is added. The credit status of the financial system will deteriorate. Banks interpret it as such. client is having difficulty To meet the total expenditure. After that, the available credit capacity decreases, negative score.
Antonella Semadini: “Credit card delinquencies have doubled in six months”
Elisabeth Piacentini, tax expert and chair of the Small and Medium Enterprises Commission (CPCECABA), said: positive details only The requirement to pay a minimum balance is “don’t tell the user how to pay.” debtor It is at the central bank.” Moreover, as soon as at least one month is not paid, he stressed.Your card will notify you immediately And we remain debtors in Veraz-type databases and central banks as well. ” Users are therefore given another classification: financial debtors.
Mr Piacentini added: complete financial education, “Everyone knows that making minimum payments on credit cards is absolutely risky, because credit cards are financed at very high interest rates.”
If you have a problem, Zerboni advised: accumulated debt“The first thing you should do is lowest rate This is to erase all credit card debt. ” In order to escape from the ever-growing circle of unpayable interests.
Credit card business decreased by 1.2% in October
As the First Capital Group report explains: Operation in pesos by credit card With a nominal monthly increase of 1.3%, outstanding balances reached $21.9 billion cumulatively, compared to $13.4 billion at the end of the same period last year, representing 63.4% growth for the year. In terms of real changes, it decreased by 1.2% from the previous month and increased by 24.2% annually.
First Capital Partner, Guillermo Barberoemphasized, “The month ended with the following results.” Portfolio reduction Despite a traditionally strong month, there were very few interest-bearing or interest-free installment offers, which in real terms highlighted the Mother’s Day date..
Defaults in the banking industry: “Banks are reducing lending facilities and reducing credit policies”
“Although this segment is one of the least affected by rate hikes, balance growth was hampered as credit lines were not renewed.”, Barbero explained.
Meanwhile, dollar-denominated credit card transactions decreased by 16% on a monthly basis, with the cumulative balance reaching USD 616 million, a decrease of 4.9% year-on-year, compared to USD 648 million at the end of the same month last year. ” Balance financed with plastic money We will see a decline again this month,” Barbero concluded.
GZ
About The Author
