In December, pay less on your credit card

File photo. Overview of the Colombian Central Bank in Bogotá, Colombia, April 7, 2015. REUTERS / José Miguel Gómez

According to a report from the Financial Superintendence of Colombia, the usury rate for the month of December 2020 will be at 26.19%, 0.57 less than the current 26.76%.

The announcement is key for the reactivation of the Colombian economy in the month of highest consumption of the year, in addition to being the lowest rate in a decade, being the last time a reduction of this was presented in 2011. Specifically, the months of January to March, when the Super set it in 23,42%.

In white silver

The usury rate is the maximum charge that your financial institution charges you for a consumer credit or one of the ordinary type. So the relief you will feel in your finances will allow you to pay less than what you paid in November.

The current rate so far is 26,76%.

Risky measure, but necessary

The drop in the usury rate is a reflection of how the financial and economic authorities of the country, Banco de la República, Super, Minhacienda, have managed to maintain low levels of intervention rates in the market.

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This reduction is the eighth of the year and appears in December, a month that, given the current context, urgently needs a capital injection in spending.

Stock photo of the Mastercard logo on a credit card.  Aug 30, 2017. REUTERS / Thomas White
Stock photo of the Mastercard logo on a credit card. Aug 30, 2017. REUTERS / Thomas White

I spend, not save

According to the calendar, starting on Black Friday on November 27, the end of the year season begins which, due to the health crisis, will be oriented towards electronic spending and the acquisition of essential goods.

However, a specialist like Carlos Diaz, personal finance expert, consider that the decrease in usury is a risk in the future, since buyers will borrow more than they are used to at the time.

The ghost of over-indebtedness, ensures Diaz, could lead to a dead end scenario for thousands of families when they do not have enough resources to cover their loan payments.

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The foregoing in a scenario in which many financial institutions have rates higher than those set by the Super, including Bancolombia, Giros y Finanzas, and Tuya, with 26.71%, 26.53% and 26.45%, respectively.

These institutions, by law, must adjust in the next few hours under penalty of sanction by the financial authorities.

Instead, those closest to the rate are Banco Serfinanza, with 25.93%, Scotiabank Colpatria, 25.66%, and Banco Falabella, with a usury rate of 24.75%.

Colombia has 18 banks that offer credit cards to their clients, 4 financial institutions and 1 financial cooperative. These entities are preparing for the last part of the year by releasing consumer credit that, due to this reduction, will probably benefit the country’s economy.

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