The card payment goes up and the loans go down

The use of credit cards increases significantly in the last months of the year in Argentina. According to various sources, last November 2018, Argentina’s financing with credit cards increased significantly with respect to the previous month and with respect to 2017.

Specifically, some $ 80,000 million of financing through credit cards was reached, doubling the average of Previous 12 months. Why are we adopting this trend in Argentina? We’ll tell you then.

Why do Argentines pay by credit card?

Why do Argentines pay by credit card?

According to analysts, the increase of up to 40% over the previous month of card payments answers to the need of Argentines to finance their purchases. The economic situation has translated into an increase in prices and the detriment of the purchasing power of Argentines.

According to Good Finance, a consultant at Focus Market, previously, if there was a rise in prices, salaries increased at par, so financing was the most feasible option for Argentines to pay for their purchases. However, now wages are not increasing at par and the ability to pay decreases, so the risk of default is higher and debt increases.

The corresponding increase in personal loans also contributes to the loss of Argentine purchasing power. All this is due to inflation and the drop in demand for other financial products such as the request for personal loans, which fall up to 60% compared to November last year.

What about loans and credits?

What about loans and credits?

During 2018 personal loans rise to reach $ 2.5 billion of total amount. However, mortgage loans fall to 82% compared to the previous year and an estimated 300 deeds with a mortgage loan compared to $ 2,000 last year. It is estimated that the banks slow to a total of $ 3,000 million in mortgages during the month of November, a much lower figure compared to the $ 14,000 million that marked the month of March, being the most prominent month of the year.

The fall in the demand for credit also affects other sectors, not only families, the commercial and business sector represents a drop in credit lines compared to last year.

To conclude, as a result of this situation, late payment increases 2.6% in the private sector and 3.8% in households, a slight growth compared to the previous year.

From Good lender we recommend using the credit card with responsibility and always taking into account the user’s ability to pay and advising the conditions and requirements of each entity so as not to fall into debt.

Recommendations for not falling into debt with your credit cards

Recommendations for not falling into debt with your credit cards

From Good lender we propose some alternatives to payment by credit card to control the indebtedness. Abuse of payments with the credit card can sometimes lead to problems of default due to the increase in the total financial cost of the credit card, such as the increase in the annual rate. Be careful not to reach the minimum payment since the following month you can generate even greater increase in it and also higher relative costs.

An alternative to credit cards can be to ask for personal loans that have reasonable conditions for your ability to pay so you can feel comfortable every month.

  • From the Cash Line of Now-credit you have a personal credit from $ 3,000 to $ 30,000 and a repayment term of up to 15 months.

  • Another recommendation is the Affluent entity, with more than 1 million people who support their work, with which you can receive money from people to people, without banks, and with which you can get up to $ 650,000 to be returned in terms of up to 48 months.

  • Finally, the Paste loan line allows you to get up to $ 60,000 in up to 36 months.

Applying for this type of credit is very simple, you can check it from our own website and we will review the requirements of personal loans and the conditions of each to recommend the one that suits you best.

And you … what financing method do you prefer? Credit card or personal loan?

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