Why is this not a good time to get into debt?

Why is this not a good time to get into debt?

This Friday, December 30, the Financial Superintendence of Colombia set the usury rate at 43.26% for the modality of consumer and ordinary credit, which will enter into force from January 2023 and which represents an increase of 180 percentage points, compared to the previous period.

(The usury rate rose and will be 43.26% in January).

Besides, In the case of the microcredit modality, the rate will be 58.8% effective per year, an increase of 337 basic points (3.37%).

This new increase will make Colombian loans more expensive, which have also been rising due to the rise in interest rates from the Banco de la República.

Jeisson Balaguera, CEO of Values ​​AAA, explains that The usury rate is the maximum interest that a financial institution can charge its customers. for consumer and ordinary credit, such as credit cards, among other modalities.

(Savings vs. debts: when is it good or bad to borrow or save).

The expert points out that this increase in the usury rate, as well as the increase in the interest rate, will lead users to pay much more for a loan at this time.

“For example, a person who buys a television for $3,000,000 over 36 months at a usury rate of 43% would end up paying an effective annual rate of close to 2.93% at this time, which translates into a fee of approximately $136,000, which when multiplied by 36 installments gives more than $4,800,000, that is, it would end up paying $1,800,000 more in interest at this time”, Explain.

(Tips for not overflowing your borrowing capacity).

To avoid this effect, Balaguera recommends that you avoid the use of credit cards and if you are going to make purchases with it, he advises that you do not exceed a quota.


Source link

Previous Story

Cubalex: The “serious violations of human rights” continue on the island

Next Story

Lula announces Jean Paul Prates as president of Petrobras

Latest from Colombia