The Annual Nominal Rate (TNA), which rises as inflation advances, a tangle of commissions, taxes and other expenses end up integrating the Total Financial Cost (CFT), an acronym that since the latest rate hikes are already above 100%, depending on the bank.
According to the latest updates from the Central Bank, the TNA to refinance card expenses (or revolving, as it is known in financial jargon) is 62% for amounts less than $200,000.
When the refinanced exceeds that number, the rate with limits provided for in the Credit Card Law comes into play, which takes the number for personal loans as a reference. In that case, and as recently reported by the BCRA, the average is 83% annual nominal.
But of course, to both rates you have to add VAT and other expenses that are included in the Total Financial Cost (CFT). For example, in one of the financial entities, the rate of 62% goes to 107% and that of 83% goes to 124%.
In other words, today the cost of financing with the card doubles the debt. This is the case that could apply, for example, to the purchase of tickets.
With the end of the quotas for trips abroad, one of the alternatives suggested by the BCRA is to finance oneself by paying the minimum of the card. The problem, of course, is that this total amount can exceed $200,000 if it involves four tickets for a family, among other cases.