In the first month of the new rules aimed at reducing the interest rate of credit card revolving, the cost of the modality rose. In June, those who paid at least the minimum invoice had an average of 261.1% per year, 18.1 points more than May.
Non-regular interest rates, in which the consumer pays less than the minimum value, fell 32.8 points in the same period, reaching 313.3% per year. Remember that as of June, banks are allowed to customize the minimum percentage for each customer. Previously this amount was fixed at 15% of the invoice.
The move was pulled by banks Sanbuwan Brasil and Tradesco. In the first, the increase was 30.7 points, totaling 241.91% per year. In the second, the growth was 4.35 points, reaching 317% per year – the most expensive among the largest financial institutions in the country.
The rate fell at Norte Bank (down 13.75 points, at 165% per year), and at Cheesa Econômica Federal (down 3.16 points, to 237.52% per year). At Itabu there was stability, with 313.3% per year.
Credit Card Changes
With the new rules in place, the YesYes Bank’s objective was to approximate the rate of non-regular interest (when there is no minimum payment of the invoice) with the revolving (when at least the minimum is paid). But the effect was the opposite. The rotary has gone up.
According to the YesYes Bank this movement is an adaptation of the institutions to the new rules, and it is not yet possible to predict if it is a trend that will continue.
The high was even with the stability of default in the modality. According to the YesYes Bank, the card revolving non-payment rate was 34.6% in June, slightly lower than the 34.7% in May.
How To Get Out Of Credit Card Debt
Despite the monetary authorities’ initiatives, credit card debt will remain one of the most expensive on the market, along with overdraft. Ideally, never fail to pay the full amount of the invoice.
If the situation goes out of control and the full payment of the invoice is not possible, the consumer should look for other cheaper credit lines to pay the debt.
One suggestion is the personal loan, which has lower average rates. It can be the difference between getting out of a choke or falling into a snowball.
Enrique Lam, Protest Executive Manager, explains in this video when it is advantageous to take a loan to pay the revolving card.