The high interest rates and usury have made credit more expensive in Colombia, a situation that could stabilize for a few more months, since inflation does not subside and household income continues to rise.
(The options to deal with high rates on credit cards).
Given the possibility of taking a loan at this time, Marc Hofstetter, a professor at the Universidad de los Andes and an expert in monetary policy, states that “if it is not essential”, It is best not to do it.
“If it is not essential to take a loan at this moment, a consumer should not consider it. What does essential mean? This is something that each household must define in their discussions, in their calculations and in their needs, but it is certainly a bad time to have credits and even more so if they are with cards in which interest rates are at very high levels ”, I said the expert in a Live with Portfolio.
(The ‘hard and mature’ are coming: so you can face high rates).
However, if you are forced to do so, Hofstetter recommends doing the math very well to establish whether or not you can pay in the future.
Tips to avoid high rates and take advantage of them
Although it is not a good time to get into debt, there are some options to face high interest rates and usury, and even to take advantage of this situation.
One option is targeted payments for specific purchases that some banks allow. With them, customers can choose a higher payment towards a specific purchase to try to have it settled before the agreed time.
Another alternative is the portfolio to whoever charges less. There is also the well-known formula of buying for a term of one month and even two to prevent the value from increasing over time.
(Is it a good time to apply for credit?: This says an expert).
It is also recommended to pay off the smallest credit or the most expensive credit first, as this is the best way to start to see a decrease in the payment agreements that will be pending.
besides, If you want to take advantage of this moment, you can opt for savings and CDT, whose high rates could favor these investments.
If you are going to request a loan, think about how necessary it is to take it at this time and how to reduce the payment term.