Why is it not convenient to pay for supermarket purchases in installments?

The way to pay for supermarket purchases changed from one year to the next. When doing it with a credit card before, 55% of customers used current payment and 45% deferred payment, now the deferred is in first place with 50.6%.

This change is not convenient and the Crisfe Foundation financial education expert, Karina Díaz, explains why: the purchase of food is a daily consumption and products that are for a maximum of 60 days such as non-perishables and when they are deferred they go away. accumulating installments and increasing indebtedness.

For example: in month one we bought $90 and deferred for three months -the commitment acquired is $30 per month-, but the following month I deferred $90 again and I already have a fee of $30 and I will have another of $30 more -it’s already $60- and each time our indebtedness is higher and this credit fee is going to be higher. “If our income does not increase, what we are doing is a debt that is going to turn into a snowball and then it is going to affect our household finances.”

Why is this happening?

beliefs. We tend to be overly optimistic and think that the income we have today will be had forever, and that is not certain. The expert indicates that there may be a reduction in income, a reduction in personnel or that those who have ventures and businesses do not achieve the dynamism they expected. “This excess of optimism makes us go more into debt and it is not appropriate in food.”

During 2022 there was an increase in the price level of food and non-alcoholic beverages and for this reason buyers possibly restricted their consumption or modified their behavior when making the payment for their purchases. According to this price increase, the 5% drop in supermarket sales and the increase in deferred payment compared to the current one, possibly people lost purchasing power in 2022 compared to the previous year, and thus they buy less and what they Buyers prefer to defer it, points out a report by the economic consultancy Oikonomics that, by analyzing data from the Internal Revenue Service (SRI) and the Superintendency of Banks and comparing them between October 2021 and October 2022, established that now purchases in supermarkets are more with a credit card and with payments deferred to several months instead of in a single payment.

What can we do?

• Review tastes and preferences in food. Many times the consumer is guided by brands but can find substitutes that give the same satisfaction and have a cheaper value.
• Get out of those deferred payments and -if it has become a habit- become aware and calculate how much is the fee that is currently paid per month for having deferred food in various periods.
• If you are using the credit card for food, analyze how to get out of this circle. “A good financial habit generates well-being and going into debt for food is surely already having me a bit worried because I cannot cover my basic needs, I am already losing my well-being and I can reflect that this is not a good habit.” How to change it? Trying to see as a family what food is being consumed, checking the pantries because surely there are things that are accumulating. A good challenge is to be creative and in this week or in 15 days consume what you have. The important thing is to review and -although it is a bit complicated because you will have to think of new recipes- on those days consume what is at home before going to the supermarket.
• In the case of personal care and grooming items, see how often they are purchased and change the habits of how we consume them. For example, in the detergent, yes or yes, load a full washing machine because if two detergent caps are used, surely the same is used with half a washing machine or with its maximum capacity. In toothpastes, review brands and substitutes, offers, which allow reducing the cost of these products. “What I have to see is how long I use it. If I have realized that the cleaning supplies last me two months, I am not going to defer them for three, I am going to defer them for two months, of which I am going to make a replacement, then I am not going into more debt,” Díaz recommends, although the The best option is always not to defer.

What is the risk?

Each time the credit card quota is deferred, it decreases and this can be a problem in urgent situations. “What happens if I have a very full quota with this food and I have an accident, in some medical centers they say that your backup will be your credit card and I will not have a quota that allows me to even give this backup in an emergency ”, comments the expert. (YO)