We must not lose sight of the fact that although July was a month of deterioration in terms of mass consumption -which showed a decline of 6.7%, accelerating the fall compared to June, according to a report by the consulting firm Focus Market- The Now 12 plans continue their growth trend in credit card consumption.
According to the measurement of the second quarter of 2022 carried out by Prism Means of Paymentwhich reveals the use made by Argentines of credit, debit and prepaid cards, The Now plans continue their growth trend in the share of credit card consumption, with Now 3 and Now 6 being the ones that have been increasing their share to a greater extent.
shopping with now 12 accounted for 24.92% of credit card transactions in the second quarter of the year, according to the survey, with an upward trend when compared to the 24.60% reached in the first quarter of this year and the 22.24 % of the second quarter of 2021.
At the same time and given the need for liquidity on the part of businesses, offers and discounts with cash payments that reach up to 20% are growing. ButWhat is more convenient, paying in cash or financing in installments?
According to Damian DiPacedirector of the consulting firm Focus Market, There are different scenarios to consider.
“If we buy a Smart TV for $100,000 and pay for it with the Now 12 plan, compared to a rate of almost 50%, with a total financial cost that can be between 72% and 80% and, compared to the evolution of future inflation and future income, it is convenient. If we finance ourselves outside that plan, the rate exceeds 130% and it is no longer convenientDi Pace told scope.com.
“Meanwhile, compared to the possibility of having a 20% discount for cash payment, the analysis is that, if the value of the product is 100,000 pesos, I would stay at 80,000 pesos. While if I pay with the Now 12 financing, in a year I would be paying 180,000 pesos. In this case, if inflation is three digits in that period, it is convenient. On the other hand, if I finance it together with the balance of the card, the television would cost me 229,000 pesos, so it would no longer be convenient, ”he added.
Modalities of the financing plan Now
The Annual Nominal Rate (TNA) for payments in 3, 6 and 12 installments is 42%, while for 18 and 24 installments it represents 49%, according to the Ministry of Domestic Trade.
can be financed in up to 24 installments purchases of computers, notebooks and tablets; televisions and monitors; white line products such as water heaters, refrigerators, freezers, freezers, air conditioners, air conditioners and/or ventilation, dishwashers, washers and dryers, kitchens, ovens, stoves, heaters, stoves and hot water tanks; medical equipment; and kits for home connection of water and sewage services.
Meanwhile, with up to 18 installments purchases of computers, notebooks and tablets can be financed; bicycles, mattresses, toys and board games; books, motorcycles, machinery, materials and tools, furniture, tires, CNG vehicle conversion kits and spare parts and gyms.
With payment facilities up to 12 installments the program foresees purchases in computers, notebooks and tablets; televisions and monitors; glasses and lenses; footwear and leather goods; aluminum pots, pans, pans and griddles; clothing, musical instruments, electronic technical services and tourism.
Meanwhile, the purchase of lighting fixtures, stationery items, small appliances, perfumery, and the installation of alarms and the repair of automobiles and motorcycles can also be paid at this stage in up to 12 installments, thus increasing the possibilities of financing.
And in up to 6 installments purchases of computers, notebooks and tablets can be financed; educational services such as language and computer courses plus sports courses and cultural activities and also personal care services such as hairdressing salons and beauty salons.
Source: Ambito
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