The revolving credit card? A success dictated by the economic crisis that is impacting Italy in deep recession. It is easy to get and credit cards that allow you to pay in monthly installments for their purchases, instead of to balance the following month, as is the case with traditional credit cards. However, everything has a price and in this case it is the high interest.
Revolving credit cards: lack of clarity and rates that multiply
In the last quarter of 2013 the Bank of Italy has estimated an interest rate of 17.20% for payments up to € 5,000 with peaks that reach 25.2%, the rate beyond which would take effect wear. In addition to the exorbitant rates these credit cards hiding a multiplication of the interest mechanism. They, in fact, lead to the installment payment virtually infinite, because, not the usage conditions being clear and transparent, it is easy to lose control over their payments and on purchases made, also taking into account that the payment conditions worsen dramatically if He skipped even one installment. The use of these cards as well as the abuse by financial institutions led to the establishment of a hotline and the provision of different branches to clarify consumers’ doubts and analyze abnormal behavior by institutions that finance loans.
Crisis that generates crisis