Subscribe via E-Mail

Get all of our news delivered fresh to your inbox every morning! Just tell us your name and where to send it using the form below.

PS – We hate spam too. We don’t sell or share our list with anyone, and we never send commercial email.




luxe
Friday, January 29th, 2016  |  USD: Buy 531.29 / Sell 543.92
20 years

Costa Ricans’ credit card debt soars 18.2% since last year

Email this page

March 30th, 2015 (InsideCostaRica.com) Credit card debt carried by Costa Ricans soared 18.2% year-on-year when comparing figures from January 2014 to January of this year, the Ministry of Economy, Industry and Commerce (MEIC) reported on Friday.

 

Total credit card debt in the country rose to ¢930.6 billion, or about $1.7 billion USD, according to the MEIC, a figure equivalent to 3.5% of the country’s GDP.

 

Credit card use continues to increase despite interest rates that would be considered usury in some countries.  Typical interest rates on plastic purchases in the country average 40% to 50% in colones and 30% to 35% in dollars, according to the ministry.  Nearly 12% of cardholders are delinquent in their payments.

 

The MEIC finds the figures concerning, and urges citizens to consider carefully their use of plastic.  Minister Ramos Welmer told reporters that high levels of credit card debt makes generating household savings difficult, and those who become delinquent in their credit card payments could find it difficult to obtain business, housing, and other types of loans in the future.

costa rica news

ATTENTION: If you are seeing this message,


Advertisement


Get our news delivered fresh to your inbox every morning.

Click here to subscribe to our email list. We hate spam too and never send commercial email.

Like us on Facebook and receive our news in your timeline

  • prdatki

    Well,how can they charge so high an Interest > It should be illegal l! That is much higher than what The Brothers were paying and the Government shut them down. Now who are the criminals?

  • Michael C

    Those interest rates are nothing short of legalized robbery! Shame on those stores for holding their fellow Ticos in financial bondage, and the government for allow this!

    • http://insidecostarica.com/ Timothy Williams

      Those aren’t stores; those are bank-issued credit cards. Retail credit (for example, from Monge, Casa Blanca, etc.) is even worse.

      • Michael C

        Thanks, Timothy! I have seen the “microscopic” interest rate chart on Monge ads, and could not believe the rates! People will NEVER get out of debt! Monge et al. must make more on the interest than the product!
        I wasn’t aware that the bank cards are also legal robbery!

        • http://insidecostarica.com/ Timothy Williams

          I should clarify “bank-issued” as “bank or financial institution issued.” One of the largest credit card issuers here, Credomatic, is not a “bank” in the retail banking sense, but they are a bank in the legal sense (think “Capital One” credit cards in the U.S.).

          These figures do NOT include store/retailer-issued credit however – these are real credit cards that consumers can use for purchases anywhere.

          Retail credit is far worse.

  • Gary Hogan

    The government should be looking out for the citizens and limit the amount of interest allowed. US banks are doing the same, although a bit lower rates (20-30%), plus payday lenders at 100-1000%!! Government needs to start looking out for their citizens more than the banks. Banks only pay single digits for their money.

Popular Content