Reasons for the rise of totaleros in credit cards in the country | YOUR MONEY

The placement of credit cards, and their use, report a recovery after its sharp drop with the start of the State of Emergency.

However, the majority of cardholders increased their preference for paying their expenses in full at the end of the month, according to BBVA.

Thus, those also known as totaleros, for prioritizing the settlement of their credit card debt on the due date, are in a boom period in the financial system.

The billing of plastic registers a significant increase while the financing balances do not grow in the same magnitude, said Tedy Vásquez, leader of the bank’s cards discipline.

Along the same lines, Joel Siancas, Chairman of the Board of Directors of Caja Sullana, commented that there is a greater use of credit cards as a means of payment, instead of being a source of financing.

“Although the boxes do not emit this type of plastic, this behavior can be observed in the market in general, both from the dependents who receive their salary at the end of the month and from the independent ones, whose flows are on a different date but fit with the day of payment of their cards”, he said.

The key is that the resources received by the user cover the expenses they have in the month, he added.

According to the financial specialist, the main reason for this decision is to avoid being involved in constant interest, with costs that affect him every month, for having made a purchase in installments.

In order to take care of his pocket, the client prefers to pay everything he spends the month prior to his billing, because, even if the user registers a good credit performance, the interest rate on his card will not drop below 26%, he specified.

The average rate of the banking system for this product is 54.19%, according to data from the Superintendence of Banking, Insurance and AFPs (SBS).

Likewise, he maintained that there are those who join this trend to generate a financial behavior regime, in which they report a careful culture of consumption that does not exceed their monthly income.

You have to be very cautious with this credit card use policy, otherwise you could fall into over-indebtedness that would endanger your financial health, he said.

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