The excitement of spending a different Christmas and New Year’s Eve with her relatives without the “stress” of the high contagions due to the COVID-19 pandemic led Estefanía Alvarado to buy a little more than she should.
As soon as the month of December began, he received in his email months of grace and discounts on consumption on the credit cards he uses. He did not hesitate and went to a shopping center in Guayaquil and bought backpacks for his nephews with a card for classes. This account turned out to be $150 and he deferred it to six months. It came with a three month grace period.
That same day he went to another store and bought a blender, plates and other kitchen items. His bill was $226 with another credit card and he deferred it to a year. He thinks they gave him a four-month grace period because the report didn’t arrive in March.
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Then, after the holidays were over, he forgot about those debts and used one of the cards again in February. “I forgot that I had those debts and I almost had a stroke when I saw that the amount I had to pay in March arrived”He says.
Estefanía, in her statement for March from a single credit card, not only received the first installment of the backpacks but also the purchase in February. She did not expect to cancel so much and she is already worried because in April the kitchen items will be added.
“I have other debts (apart), in a local and rent. I hope, until I get out of debt, in the middle of the year I will prepay half of the deposit, ”he indicates.
Ronny Estrella lives in Quito and also took advantage of the months of grace. He used two credit cards. In one to buy a tourist package and travel to the United States. There he received three months of grace and deferred it to 24 months. In December he also bought appliances for nine months.
In the first debt installments of $62.43 were made and in the second of $39.45. That is to say, that Ronny from this month will cancel $101.88. He assures that he analyzed his income and that he can cover that level of monthly debt.
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Only in December 2021, the amount invoiced with credit cards was $891.2 million, which represents a monthly growth of 9.0%according to data from the Association of Banks of Ecuador (Asobanca), whose source is the Superintendence of Banks.
But, so far this year, that level of debt has dropped. In January it was $711.1 million and in February it was $686.3 million.
The debt in December, in some cases was deferred using grace months such as Estefania and Ronny. Those benefits granted commercial houses like Pycca and De Prati.
Both companies registered a high demand in that month, not only with purchases with cards but with direct credit, which also has this advantage of months of grace.
Kristy Torii, Pycca Marketing Managerpoints out that in December They offered to pay from February with the Pacificard card and from March with any card. In addition, those who accessed the Pycca Club also canceled from March.
“By having all the payment facilities, it becomes an interesting option during festive times. The client values more the way of financing the debt”, he says.
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Torii points out that December 2021 consumption compared to 2020 improved in all stores, one of them located in San Marino Shopping of DK Management Services. “The purchase decision was reflected in our sales. There was more customer confidence (because of the pandemic) ”, he explains.
De Prati also has this benefit, but 3 and 6 months without interest plus two months of grace or the option to defer purchases for up to 24 months. They have it in Crédito De Prati and with the credit cards of the banks that maintain commercial agreements.
Tamara Espinosa, Vice President of Marketing at De Prati, points out that in December they managed to improve demand. “80% of our sales are made through our De Prati credit and this is how we also recorded growth compared to December 2020. In the last month of 2021 we had an increase of more than 20% compared to last year”, says Espinosa.
This company recently increased the credit term to 36 months.
Financial experts recommend using this type of grace month benefits, always with a prior analysis of income.
The economist Guillermo Granja He says that the planning begins by writing down all the income, for example the fourteenth salary in March, utilities in April and some extra. And on those values commit a percentage, about 40%.
“You have to take into account that I am going to pay a lot of what I have bought in April and I have to pay the first installment of that debt, then the salary we have is reduced and therefore going to the movies, walks so as not to look bad in that indebtedness”, says Farm, who suggests not paying the minimum of the card.
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Criteria shared by economic analyst María Lorena Saragosín. He claims that the card or direct credit should be used for expensive products and services that could not be purchased in cash. Not at all. “Before you buy something, ask yourself what would happen if you didn’t have it, or if I didn’t buy gifts, if the answer is “nothing” then it’s just a want and not a need,” she says.
He suggests making a list of all current commitments, whether with credit cards, business credit, mortgage credit or loans from friends or family. “In this way you will know exactly the total value you owe,” he says.
Alternatives to high debt
For this type of situation, Saragosín advises the following:
- In order not to go into default and when it is not possible to pay the total amount, the minimum must be paid a few times. The ideal is the total.
- Pay off cards with high interest rates or cards with lower balances first.
- Restructuring debt is another option. (I)
Source: Eluniverso
Paul is a talented author and journalist with a passion for entertainment and general news. He currently works as a writer at the 247 News Agency, where he has established herself as a respected voice in the industry.
