Credit Cards Can Overwhelm Users
story by La Prensa
Credit cards can be a double-edged tool: a financial lifeline or an overwhelming wave.
They are easier to carry than cash, but there are risks, especially when consumers don't think carefully before pulling them out to pay for an item.
As of June 1, Panama's residents had some 524,000 credit cards with a total outstanding balance of $799 million.
According to the Panamanian Association of Credit, a consumer should carefully read the terms of a contract and be clear on issues such as late fees and dates when payments need to be made. Many cards require the holder to cancel all balances within 25 days from the date of
the issuance of the bill, or face financing charges.
The minimum monthly payment for most cards is 3 percent of the amount financed, but the customer must bear in mind that if the only amount paid is the minimum, the interest will quickly begin to pile up.
The ideal scenario for consumers is to use a credit card responsibly, and avoid compiling a huge debt that generates large amounts of interest payments.
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