Saturday, October 1, 2022

Outstanding Credit Cards: How Much Will It Cost to Refinance Balance After the Last Increase in Interest Rates

For the first time in recent years, CFT will exceed 100% per year, well above wage growth. laziness of banks

By Claudius Zlotnik

12/08/2022 – 09,22hs

Outstanding Credit Cards: How Much Will It Cost to Refinance Balance After the Last Increase in Interest Rates

strong rise of Rate of interest That the Central Bank applied on Thursday afternoon, it will affect the pockets of those consumers who have loans from their cards. that due to some reason they cannot make the full payment. For the first time in recent years, this cost exceeds 100% per year.

Average, Total Financial Cost (CFT) To refinance the credit card balance will be around 105% per annum from today.

This is the cost just a month ago 86.8% annual average Leading Banks.

This was due to the gradual increase in the rates applicable by banco central in the last two weeks. The nominal annual rate, which stood at 57% per annum at the beginning of July, has now risen to a nominal 71.5% per annum.

However, there is one thing to keep in mind: inflation acceleration Opens up the possibility that this year’s inflation will reach 90%—or even more—90%, with the new cost of refinancing cards just a few points higher than inflation forecast for this 2022.

the problem is that many Salary will hardly improve by such a percentage. Put another way: Workers’ earnings are likely to lag behind inflation. And further back, obviously, by the cost of loan refinancing.

For the first time in recent years, CFT will exceed 100% per annum, well above the growth of salaries

For the first time in recent years, CFT will exceed 100% per annum, well above the growth of salaries

An Additional Problem: Banks

The problem is that banks are cutting card limitWith which many customers have no other option but to resort to personal loans to further their loans.

Banks stop financing through credit cards and provide other loans to their customers – ahead of its regulation banco central-, which are more difficult for those who do not make a living or who need money out of circumstance.

It basically exists because of the laziness of the banks when it comes to updating the financing limits of their customers.

las financial institutions For example, they tend to wind up more to their best customers, who prove their salaries. And they leave without updating – or else they do it below inflation – in cases where the commercial commitment is less valuable.

In the case of corporate cards, the situation became even more complicated. specially for SME, Some companies commented on the list of orders sent to iProfessional from two different banks. One for the national capital and the other for the foreign. Terms include: Presentation of the last three balance sheets and the minutes of the respective shareholders’ meetings.

It basically exists due to the laziness of the banks when it comes to updating the financing limits of the customers.

It basically exists due to the laziness of the banks when it comes to updating the financing limits of the customers.

Those small and medium companies who have not taken loans from banks in the last two years. are now banned To update the maximum amount to be used for the Corporate Card.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news
- Advertisement -