This is the most you can be charged for your credit card purchases in Colombia, the usury rate rose

Credit card purchases would be affected by the increase in the usury rate that will be applied during the month of April to consumers who usually use credit to buy. This was confirmed by the Financial Superintendency of Colombia for this beginning of April, in which it said the rate will remain at 28.58%.

What this means is that the interest cost that was established, will be the maximum that can be paid in a loan by financial institutions. The recommendation made by some experts is to be cautious about the way these plastics are used, because as usury shows, it could be counterproductive for people's finances.

“For users, it is advisable to be careful when taking a credit card, because it is an easily accessible product, which due to improper use generates an over-indebtedness that rises like foam,” banking and insurance expert Wilson Triana commented to the newspaper La República.

According to figures expressed by the Financial Superintendency of Colombia, in 2021 spending through the use of credit cards in the country reached a fairly high figure in pesos, with up to 84 billion pesos, something encouraging considering that the economy in Colombia was reopening after the severe blow received by the merchants due to the Coronavirus pandemic both locally and abroad from which a large part of the marketed products arrive.

The figure for 2021 is more than 31% higher than in 2020, but 2% lower than it was in 2019 when spending reached 85.7 billion pesos through credit cards.

The percentage growth for the month of April compared to March is 0.87%, being the highest according to the history related to last year (2021). While for mini-credits the rate stood at 56.96%, rising 0.75% also taking as a reference point the data for March.

In the same report on how the usury rates came out, the SFC reported that the annual effective current bank interest for the consumer and ordinary credit modality stood at 19.05%, up 0.58% compared to the past certification issued by the bank, which was 18.47%.

At least since January 2022, the trend for the usury rate has been increasing, so it is expected to see how credit card use will behave by May. So remember the advice of the experts: be careful when buying with plastic, because from one moment to the next you may see your economy out of control due to a high rate of usury.

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