Guatemala's credit card debt at 2.37 billion quetzals

©image: Mike Linksvayer

It said that despite high interest rates and a threatening crisis, the use of credit cards is concentrated in purchases at supermarkets, restaurants and gas stations.
Credit card issuers say their main concern is the increased use of credit cards for consumer goods, even though interest rates are higher than those charged by the banks.
In June 2006, when there were 26 card issuers for 700,000 cardholders, credit card debt was just over 2 billion quetzals. Since then the business has consolidated and there are eight issuers, with more than one million holders.

Source: prensalibre.com

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Credit card interest rates double in Guatemala

November 2008

The interest rates charged by credit card issuers has risen 15 points since last January.

According to statistics from the Banking Authority (SIB), the average interest rate in quetzales charged by credit card issuer banks has risen from 16.89% in January to 30.43% in October, and the rate for operations in US Dollars has gone from 17.08% to 26.39% in the same period.

El Salvador: Credit Card Law in its Final Stretch

July 2009

It will regulate the relationship between cardholders and issuers, by defining rules regarding contracts and interest rates.

With the new law, interest rates shall not be more than 10 points above the effective weighted average rate calculated by the Central Bank.

Guadalupe Hernández writes in Elsalvador.com: "For example, the average interest rate for a one year loan is 9.2%, so credit card rates could not be above 19.2% with the new law. However, in reality issuers charge interest rates that fluctuate from 29% to 38.9% for a $1.000 loan."

Costa Rica: Consumers Owe $ 1.173 Million in Credit Cards

March 2011

The Economy Ministry presented the quarterly survey on credit and debit cards, through October 2010.

Regarding credit cards during for this period, there were 29 issuers with 403 types of plastic.

If debt was distributed equally among the economically active population, it would represent a per capita debt of $ 837, which is almost double the minimum wage.

Guatemala: Credit Card Reform Presented

January 2011

The Government presented Congress the Credit Card bill.

The bill if approved by Congress, will regulate the contracts, demanding to provide the given credit limit, interest rates, fees and charges which apply. The institution issuing the credit card must provide the customer a copy of the contract.