Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.


Sign in to follow this  

The average credit card APR has reached 414.3% in Brazil

The last post in this topic was posted 1905 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Recommended Posts


I looked up Brazil's inflation rate, to see if that had something to do with it. Currently about a 9.5% annual rate. High, but nothing to do with 414%.

 

If they still charge interest even if you pay the bill in full each month, you have no choice but to use debit cards, unless they offer a free BMW after one year.

 

I wish I owned a Brazilian credit card issuer.

Edited by Burgerwars

Share this post


Link to post
Share on other sites

I wonder what scoring method they use? With that said........interest rates like that make First Premier attractive.

Share this post


Link to post
Share on other sites

Im sure it has something to do with the default rate.

 

Google for some specifics and what you'll find is that the majority of such "credit card" debt is actually store revolving debt which is sold to banks. Most of the debt features 0% repayment terms over a given period (typically 6 mo).

 

It seems that the banks chase such debt aggressively (competitively), keeping discount rates on the purchase low, betting that consumers won't repay in full during the promo period, and look to reap handsome profits when that's the case.

 

I was browsing this between flights today and didn't have a chance to capture the link. At any rate, I believe I read that something like 80% of the loans are satisfied within the promo period. That other 20% is paying dearly for the credit privilege. (Unquestionably, at such rates, the default rate on that 20% remnant will be high.)

Share this post


Link to post
Share on other sites

An incredibly good story about Brazil and the nature of money here: http://www.thisamericanlife.org/radio-archives/episode/423/the-invention-of-money

 

Just click on the tiny arrow facing right and it will play. All about how money is a fiction dependent on our belief that it's real.

 

Money has value because people are willing to accept it in exchange for goods and services, period.

Share this post


Link to post
Share on other sites

An incredibly good story about Brazil and the nature of money here: http://www.thisamericanlife.org/radio-archives/episode/423/the-invention-of-money

 

Just click on the tiny arrow facing right and it will play. All about how money is a fiction dependent on our belief that it's real.

 

I'd be loathe to describe belief as "a fiction". In the case of money, the "belief" in its value stems from a perception that money is a relatively scarce commodity -- in other words, people are willing to part with money only in exchange for adequate value because, in aggregate, people find it necessary to carefully manage their money in order to successfully get the majority of the goods they desire.

 

Bottom line, it's when careful money management fails to achieve that mission across the broad population, because of a general oversupply of cash, that people lose faith in the value of money. In other words, confidence in a monetary system is very closely linked to the supply of currency. When that supply outstrips available product (typically as a consequence of government actions that expand the money supply faster than the economy is growing), confidence in the monetary system directly suffers. There's no fiction involved whatsoever.

 

In the Brazil case cited, the new virtual currency (that coexisted alongside the hard currency) was not a fiction. And if the government hadn't taken steps to ensure that actions giving rise to currency oversupply didn't bleed over to the virtual currency, "belief" would have promptly mirrored reality.

Share this post


Link to post
Share on other sites

The last post in this topic was posted 1905 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  




  • Member Statistics

    • Total Members
      179,927
    • Most Online
      2,046

    Newest Member
    MaalyJ
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines