2024-01-16 21:07:30
Why did delinquencies increase?
According to the characteristics of the debtors, delinquency increased more in people with income between S/ 2,750 and S/ 4,590 and in those under 40 years of age.
Luis Tuesta, Transfer pricing and Corporate Finance manager at TPC Group, told Gestión that “the factors that affect this result are the current economic situation. There is an economic recession in Peru and that affects the ability to make decisions regarding family spending; others, for example, have lost their jobs and cannot fulfill their obligations.”
For his part, Arturo García, economist and professor of Finance at ESAN, explained that compliance with payments is due to the fact that in “an environment of economic recession, of high inflation rates, there has not been a drop in interest on loans.” of credit card consumption”.
The economic recession is one of the factors that caused the delinquency rate to increase. Photo: gob.pe
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Panorama of payment compliance for 2024
According to Government estimates, this year the Peruvian economy will grow an average of 3.1%. However, some risk rating agencies and financial entities do not agree with the estimate.
Economic projections 2024.
Tuesta said that the default rate will depend on the improvements in 2024 and the economic situation that the country presents with private investment.
“If the outlook does not change, the delinquency rate might remain stable, but it may even increase. It will depend a lot on the projections and variables such as inflation, the exchange rate, among others,” she said.
Enzo Giampier, financial specialist, considered that with the arrival of the El Niño Phenomenon, several sectors will be affected and would impact the GDP. However, a moderate level is expected, but taking into account possible floods, credit card debt payments might still increase this first quarter.
“There must be an economic projection in families. It is already known on what dates these events can occur and the possibilities of coping with the finances, debts and loans that have been generated with the banks must be anticipated,” he warned.
Arturo García highlighted that “since September 2023, the Central Reserve Bank (BCR) has been reducing the reference rate, but it does not translate into the financial system with a reduction in interest rates, especially on credit cards. On the contrary, it has increased.”
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Recommendations regarding the increase in delinquencies this 2024
García provided seven recommendations so that the population that has a high delinquency rate on credit cards can reduce this rate and avoid entering Infocorp.
- Installment credit: Credit card debt must be converted into installment credit. This will give you a longer payment period and lower interest rates.
- Means of payment: it must be understood that the credit card is not an extension of the salary, but rather it is a means of payment. This product should not be used as financing.
- Cancel at the end of the month: the use of the credit card must be responsible, as a payment facility, and cancel what has been consumed at the end of the month. You should not pay only the minimum because interest increases and it becomes a ‘snowball’.
- Cash availability: credit cards should not be used to have cash because the interest rates are very expensive, up to 100%.
- Make a budget: a monthly or biweekly budget must be made where fixed expenses and variable expenses are differentiated to foresee the payments that will be made on the income they must have.
- Reduce the number of credit cards: there are people who carry up to four credit cards. Just one is enough if it is used as a means of payment.
- Debt purchase: there is also the possibility that a bank can buy all the credit card debts in one and the entity will offer a lower interest rate and a longer payment term.
Each person should have only one credit card, no more, considers Arturo García. Photo: gob.pe
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Negative effect of late payment
Enzo Giampier explains that when the user accumulates arrears, the financial system changes color, from green, to yellow, orange and red, and then changes to Infocorp.
With this, no financial institution will grant loans, credit cards or services.
“The person who is in default is no longer subject to credit and not only in the financial system, but in any company or trade. Even to rent a property, the owner checks how the future tenant is doing,” added Arturo García.
This means that if you have late loans it also affects whether you want to buy or rent a property, since the company or tenant will see the history and if you do not meet the payments, there will be fewer opportunities to offer you a contract.
Peruvians must become aware of debts and pay credit cards on time. Photo: gob.pe
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