Consumption drops with credit cards and personal loans

Financing by personal loans, credit cards and mortgages slowed sharply in June due to devaluation and high interest rates. Personal loans experience a significant deceleration in growth, showing only an increase of 0.84% ​​in June compared with May

The balance rises to 408.388 billion of pesos for the accumulated total, representing an annual growth of 47.30%, against 277.249 million pesos from the end of the same month of the preceding year .

The credit card transaction barely reached an increase of 0.43% over the end of last month; and year-on-year growth reached 35.01%, mainly due to inflation.

"Rising rates and exchange rate volatility have pushed several entities to increase their personal lines of credit, although rates start at 40/45% The key to the deal is the total financial cost that reaches 80%, "says Guillermo Barbero, partner of First Capital Group .

These costs had an impact on the line of credit which was the tool Barbero explains:" The globalist fever was pbaded very quickly and there was more than an offer and promotion of 12 interest-free installments for television.The staff also felt in June the impact of rising rates, which "It's obviously translated by greater caution when it comes to removing plastic wallets," Barbero said.

L Mortgage lines, including those adjusted for inflation / UVA, continued to grow, reaching an increase of 3.70%, or half of last month, accumulating a total stock of 203 $ 585 million at the end of the month. On a year – over – year basis, it was 161.22% and continues to be the fastest growing line of a year on the other. "But this is not the exception and it is clearly observed the cooling of the mortgage, that line that was the big protagonist of last year, today is clearly affected by the instability of the exchange rate, "said Barbero. said the expert, "confirms what we had advanced last month on the considerable decline in applications for access to a mortgage."

"It is clear that these decisions are of great importance both for supply and demand, Banks and potential debtors will therefore observe how the market values real estate are reorganized before resuming the operations carried forward, "argued Barbero.