Latest credit card survey shows public lacks financial knowledge

About 41 percent of credit card holders have no idea of the interest rate they pay, according to a new economics ministry study.

Nevertheless, the study showed that the number of credit cards in circulation increased 5 percent since April and that the amount owed also went up 3.1 percent to 836 billion colons or about $1.54 billion.

The consumer section of the Ministerio de Economía, Industria y Comercio does a credit card survey every three months.

Ministry officials said that as a result of this survey they would create a program to help credit card users develop a consumer strategy.

Credit card rates here would be illegal in many other countries, but there does not seem to be any effort to rein them in.

The anticipated depreciation of the colon also has to be considered.

The highest annual  interest rate on a credit card is 70.4 percent.

Some 68 percent of colon credit cards have interest rates between 40 and 50.4 percent.

Some 68 percent of colon credit cards have interest rates between 40 and 50.4 percent.

Some 68 percent of colon credit cards have interest rates between 40 and 50.4 percent.

The study said that 70.4 percent of the credit cards denominated in dollars have rates between 30 and 36 percent.

Nearly 60 percent of the respondents in this survey said they never had had studies in financial education. Only two state banks and only two private banks have such programs, the ministry said.

This entry was posted in Costa Rica News. Bookmark the permalink.