With the current economic situation and inflation rates, more and more families in Cordoba use their credit cards to make current and essential expenses, but in the medium term it becomes difficult to pay the debts acquired with the cards due to the lack of liquidity.
In a report from the Córdoba Province Ombudsman’s Office, it shows that 28% of households in Córdoba that have at least one credit card do not make full payment of the summary and consequently contract a new debt with the bank.
In addition to the interest that is added for not paying the cards in a timely manner (which makes it more difficult to get rid of the debt due to the amount that rises), it is difficult for families to meet their needs and, many times, a cut is imposed on them in the possibility of continuing to use the card for occasional expenses.
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According to the Ombudsman’s survey, in the last year, 90% of Cordoba households have taken on some type of debt. In one out of two casesthey remain in the first phase of indebtedness that involves informal channels to solve the situation: they ask friends, relatives or employers for money.
On the other hand, when they no longer have the primary resource left, they enter the second phase. Three out of four Cordovans are formally indebted, which implies the use of a credit card or a loan with a financial entity.
Finally, there is the third phase that is based on going out to request personal loans or credits to pay off a previous debt. 30% admit that, in the last year, they have had to resort to this instance.
More and more families in Cordoba, lately, can make ends meet comfortably or without any outstanding debt. The alarming thing is that more and more households are contracting new and larger debts to pay off the above. At the same time, the purchasing power decreases more and more, so it becomes difficult to move forward.
- REASONS FOR INDEBTEDNESS:
- 31% go into debt to pay, the credit card statement
- 22%, to pay taxes, services or rent
- 20%, to buy food and medicines
- 19% do it to fix the house, repair the car or buy goods.