The amount of Credit cards it grew in the second semester and there are almost 3.5 million plastics on the market. The increase in debit was noted in counted payments, but in financed purchases credit cards continue to have their preponderance. And its use also brings habitual errors that consumers.
The latest report on the retail payment system for the second half of last year, prepared by the central bank (BCU), indicated that the end of 2022, the total number of plastics emitted throughout the country was 3,494,938 and it meant that there were 45,996 cards more than those issued in June. In addition, practically 30,000 more cardholders were verified compared to the first half of the year, the average number of cards per user remaining stable at 2.5.
The BCU reported that operations in the country increased 22% in that period, with a 20% increase in transactions with cards issued locally and 52% with cards issued abroad.
The total amount operated, measured in constant pesos, compared to the same period of the previous year, increased 8% in operations with local cards and 40% in transactions with foreign cards.
The report noted that 122.3 million credit card transactions were made for a value of $165,095 million, equivalent to US$4,120 million.
Credit card payments
In another order, operations carried out abroad with cards issued locally increased 14% compared to the same period of the previous year. The total amount traded, measured in constant pesos, registered an increase of 19% year-on-year.
The report stated that the numbers presented include purchases and automatic debits made through credit cards issued by bank and non-bank financial institutions. Finally, he added that in the second half of the year the number of bank cards represented 71% of the total number of plastics issued locally.
The most common mistake
Dora Szafir She was a civil judge, professor of Private Law and Consumer Relations at the University of the Republic.
As the main problem in the use of the credit card, he pointed out the minimum payment. “It is the most serious that people have. When they finance and do not pay the total of what they spent in the month. The interests are very high and capitalizable ”, he explained.
Credit cards have a Effective Annual Rate (TEA) of financing and another TEA for Blackberry. In both cases VAT is added.
In it account status of a credit card that Szafir had marked that the TEA in pesos for financing was 89% and the default was 104%. In other surveys, the first is 80% and the second is 87%. If the user finances, but makes the minimum payment on the date the first TEA is applied, if he is late, he must pay the TEA of late interest.
“CSince the person does not pay in full, they charge interest from the date of purchase and then on the remaining balances”, explained the specialist.
“So they pay and pay and never stop paying. People think that nothing happens, but they never get out of debt, ”he added.
“As much as they tell you how much interest is, the person does not imagine that the fact of paying that minimum is going to generate a debt that they will never finish paying,” he said.
Credit cards have a text in the account statement that clarifies the financing conditions. “Making only the minimum payment will increase the time and cost of debt“, says.
Szafir makes it clear that the interests and conditions set by credit cards are aspects that are allowed and established in Law 19,731 on regulation of the operation of electronic means of payment.
The articles indicate that credit card contracts must explain how to determine and communicate the applicable interest rate on debit balances and any other charge, as well as the place and date of payment.
Also the method that will be used to calculate the amount of interest to be paid, and the way to calculate the surcharges and all expenses generated by the debtor’s default. In addition, you must specify how to determine the minimum payment and how to allocate partial payments.
The problem for Szafir is not so much the information that is available, the problem is the little financial education that users generally have. “Not everyone understands no matter how much information they have,” she concluded.
Another aspect to take into account that the expert mentioned was the extension of the credit card. “Sometimes the one with the extension ends up spending what the other (the owner) can’t afford,” she said.
