The decision was regulated in the Official Gazette in Communication “A” 7862/2023, following double-digit inflation for the second consecutive month.
The rise in inflation, which is already close to 140% year-on-year, has an impact both on the rise in the interest rate for installment purchases as in the cost of refinancing of balances. In this context, starting in November the cost of credit card financing and pay the minimum It will have a very high cost.
The decision was regulated in the Official bulletin in Communication “A” 7862/2023, following double-digit inflation for the second consecutive month, 12.4% in August and 12.7% in September. Credit card refinancing will increase from 107% to 122% annual nominal (TNA), a percentage that applies to amounts less than $200,000 or $200. However, The Total Financial Cost (CFT), which will finally appear in the summary, will be around 302.8% approximately.
Pay the minimumrequest a cash advance or pay in installments outside the program Now 12 It will involve managing these numbers in the budget. For this last payment plan, the logic of short-term financing is extended, since Now 3 continues to be the most chosen option.
For the consumptions that exceed $200,000 or $200, The rate applied adheres to the regulation by the Credit Card Law. The interest applied They may not exceed 25% of the rate that financial institutions apply to personal loans. That is why the CFT will depend on each bank, with financing being more expensive in private entities compared to public ones.
Getting into debt, a headache
The financial analyst Andrés Reschini in dialogue with Ambit He maintained that “the lowest rate is always advisable, that is obvious” but it must be taken into account that “next month there will be the flow to attend to it. It seems obvious, but if every month I spend more than I earn and more debt accumulates, even if it is financed at a negative rate, I may at some point have difficulty paying it off.“, specific.
In this regard, he analyzed that, it is one thing to go into debt to acquire goods and another to finance current expenses, “There I would worry about the structure of expenses more than the way they are financed.”
Source: Ambito
