Credit Card Debt in Costa Rica Rose 2% This Year

Costa Ricans continue to rack their credit card debt, rising 2% since the beginning of the year, for a total debt of ¢604.533.000 colones according to the Ministerio de Economía, Industria y Comercio (MEIC) - Ministry of Economy, Industry and Commerce.

The study was made by the Dirección de Estudios Económicos (Bureau of Economic Research).

The MEIC is warning consumers about the importance of proper credit card management, using the instrument to facilitate purchases, but without generating affordability problems and indebtedness.

Credit card interest rates in Costa Rica can be as high as 42%. Some products have a lot rate of 11.5%, but most average over 30%, says the MEIC press release.

In the region, Panama has one of the lowest credit card rates, with an established limit of 24%, while it can 45% or higher in places like El Salvador and Honduras.

With respect to debit cards, the MEIC reports that 26 debit card issuers in Costa Rica issued some 91.000 more debit cards compared to the previous study.

Withdrawing cash with a debit card can be free to costly, with some card issuers offering unlimited free withdrawls within their own network, at a fee using the network of others, to other issuers limiting withdrawls from a few to a dozen each month.

The cost for withdrawing cash with a debit card can range from as little as ¢50 colones to ¢600 colones.