Mexicans are becoming more responsible when paying for products, opting to use their credit cards as a payment method, rather than seeing them as a way to obtain financing.
This is the view of the President of the Association of Bank of Mexico (ABM) Luis Robles, who spoke to El Diario in Mexico. He said that the latest figures showed that nearly 50% of card users now use their credit cards to buy goods and services, and settle within 28 days, without incurring in any interest.
Robles welcomed the news, saying that it shows that card holders are increasingly seeing their credit cards as a way to pay for goods and not just as a way of gaining credit. He also highlighted the fact that this more responsible use of cards demonstrates that people are able to make purchases within their means and understand how to use credit. This has helped lower bad debt and help people use credit to their advantage.
The latest ABM figures show that credit obtainable by credit cards in Mexico grew by 7%, whereas other areas of consumer credit increased by 20%. Overall, consumer credit grew in the second quarter by 14%.
Although credit had increased against a hard economic background, Robles said that he thought the growth was sustainable, mainly because there is stability in the country and this, coupled with record low interest rates, means that bad debts are falling. Delay in payments rates for consumer credit fell from 4.9% to 4.1%.
Robles believes that people across all levels of society are paying down debt in a healthy way and the banking system in Mexico keeps being strong.
Picture: The Pictographers