The National Commission for the Protection and Defense of Users of Financial Services recommends that those who have credit cards not use them because inflation will continue to trigger interest rates, informed José Antonio Mejía Lozano.
The state delegate of the Condusef explained that with the 7.75% that inflation reached during the first half of last month and that became the highest level so far this cycle, those who have credit cards should keep them away from their wallets and forget about them for a while.
Mejía Lozano asked citizens to try as far as possible to be careful with their finances, especially with the management of their cards, since abusing them will have a negative impact on their pockets.
The official explained that if someone uses their credit card even to pay for the supermarket, as some do, it is more likely that they will suffer the rising interest. Currently the cost at which plastics lend is around 34.31%.
However, the interest rate varies depending on the line of credit that the user has granted, for example: “in amounts of up to 10 thousand pesos, the average cost is 46.4%, in amounts with a limit of 20 thousand pesos, it is of 43.2% and in amounts greater than 30 thousand pesos the rate is 36.2%”, detailed Mejía Lozano, based on Banxico data.
The interest rates are paid by people who do not cover the total debt, but bear the debt by paying the minimum balances.
“40.7% of people who use credit cards only pay the minimum balances or less than the total monthly debt, which causes banks to end up charging them more interest,” he warned.