Historic inflation and rising interest rates would increase delinquency – Q COSTA RICA

QCOSTARICA – Rising interest rates, along with the impact of the highest inflation in 13 years, would soon translate into more delinquency, experts say.

However, if you are one of them or at risk of falling into this condition, you must remain calm and remember that the opportunity cost of hiding and not paying has a high price in the end. account, which is why various financial advisors recommend approaching the respective financial entity and reaching a payment agreement.

Longer terms, debt consolidation and interest-free debt repayment are some of the options you could take to breathe new life into your finances, since banks and other entities have implemented various programs since the start of the Covid-19 pandemic in 2020.

At the moment, it is not known to what extent delinquency has increased in the financial system, since it is an evolving percentage and which has not finished reflecting the impact of the exchange rate, the fuel, cost of living and other variables.

In any case, debtors should be aware that putting all debts in one basket will allow them to negotiate at a lower rate and recover cash.

In this sense, to obtain a loan under better conditions, it is necessary to take care of your credit file and avoid any legal proceedings.

“Financial entities must make adjustments that can influence consumer dynamics and avoid country-level problems, but above all personal and family problems, therefore, debtors are recommended that in the event of an urgent economic situation, they approach financial entities and establish agreements that avoid consequences such as bad credit references due to non-payment,” said Elizabeth Morales, Deputy Director of Coopecaja.

Review and understand the features and contractual terms of your current loans: whether the rate is fixed or variable, what factors affect that rate, the term of the loan, among other terms, must be extremely important to debtors.

Delinquency affects the entire financial system, since it can lead to deterioration of indicators.

“During this year, at Coope Ande, 1,800 payment arrangements have been concluded and the partners who present various situations in their debts have benefited from them. We urge them to approach the branches, as well as through the call center, to explain their situation and analyze the options that allow the continuity of their payments, while avoiding, in turn, sullying their credit history in the national financial system,” assured Adriana Cordero. , Credit and Recovery Manager of Coope Ande.

Mari Jose Acuña, senior manager of personal lending products at Scotiabank, explained that the customer can choose to extend the term of the loan and thus obtain a reduction in monthly payments. In the months that have passed since this 2022, we have carried out 42 refinancings.

Scotiabank has the settlement option for home loans, pledges and leases which were formalized, at the time, in dollars. Similarly, for real estate loans, and after analysis in accordance with the bank’s internal policies, the

Esteban Jimenez, director of personal banking services at Davivienda, said that they are committed to supporting their customers in difficult times, for this reason their leaders and advisors provide personalized advice to find the solution that best suits the customer. depending on their financial situation. In the case of debts in dollars with Davivienda, when establishing the automatic payment of the loan, customers can access a preferential exchange rate.

People who manage to reach a payment agreement must remain calm by having more money and savings of value.

According to experts, debtors should worry about maintaining a clean credit report, because not paying has a high opportunity cost.

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