2024-07-27 13:03:26
When paying for things like food, clothing, etc., using a deferred purchase with a credit card, you assume a high interest rate of 16.28%. Find out how much you actually end up paying.
The credit cardfor several years now, has become an aid to the Ecuadorian middle class to pay for basic expenses such as groceries, health and education, among others.
He deferred credit represents 52% of purchases in the supermarketsaccording to data from the Superintendency of Banks.
In a low-income economy, with rising costs due to taxes such as VAT, credit cards help maintain consumption; but if the costs of deferral are not taken into account, problems of late payments or difficulty in paying debts can worsen.
Practical examples of how much you end up paying when you defer with a credit card
-Yes one Purchase of clothing and other accessories It costs $350 and is deferred for 6 months, the final amount to be paid is calculated as follows:
1.- The annual interest of 16.28% is divided by 12, because the debt is paid monthly.
2.- The resulting 1.36% is divided by 100, which gives 0.0136. This last figure is multiplied by the number of months of deferral. In this case it would be 6.
3.- The final result of 0.0816 is multiplied by the original cost of the purchase, that is, the $350. Thus, in the end what will really be paid is an additional $28.56 for interest. The real cost with the deferral is $378.56, which means installments of around $63,093 per month.
-If the grocery shopping add up to $550 each month and are also deferred for six months, following the same steps as in the previous example, the result would be that you would end up paying $44.88 more and the total amount would add up to $594.88. This would mean installments of $96.65 per month.
It should be noted that if you defer payment for groceries each month, the monthly payments for each purchase will add up and in the end it will create a snowball of increasing credit card payments.
-If you want to make one repairing your home for $2,500 and defer it to 9 months, what will actually end up being paid is an additional $306. The total amount comes to $2,806, which will represent monthly payments of $311.77
The longer the term, the higher the final cost, but the monthly payments will be lower. Thus, if the deferral is for 12 months, the additional payment with interest is $408. The total amount comes to $2,908, which will represent monthly payments of $242.33. (JS)
By: LA HORA Newspaper