Revival of Credit Card Usage in Argentina: Inflation and the Resurgence of Now 12 Plan Fuel Consumer Spending

The use of credit cards in Argentina has increased in recent months, due to a combination of factors, including inflation and the return of the Now 12 plan.

Inflation

Inflation in Argentina has been on the rise in recent months, reaching a record high of 60.7% in June 2022. This has made it difficult for people to afford to buy goods and services with cash, leading them to turn to credit cards.

Now 12 Plan

The Now 12 plan is a payment plan that allows people to buy goods and services in 12 installments without interest. This plan was suspended in 2019, but it was reinstated in 2022. The return of the Now 12 plan has made it even more attractive for people to use credit cards, as it allows them to spread out the cost of their purchases over a longer period of time.

Increase in Credit Card Use

The increase in credit card use has been significant. In the first quarter of 2022, the volume of credit card transactions in Argentina increased by 25% compared to the same period in 2021. This increase was driven by both inflation and the return of the Now 12 plan.

Impact of Increased Credit Card Use

The increase in credit card use has had a number of impacts on the Argentine economy. First, it has led to an increase in consumer spending. This has helped to boost economic activity, but it has also put upward pressure on prices.

Second, the increase in credit card use has led to an increase in debt. The average Argentine now owes around $10,000 in credit card debt. This debt could become a problem if interest rates rise or if the economy enters a recession.

The increase in credit card use in Argentina is a sign of the times. Inflation and the return of the Now 12 plan have made it more difficult for people to afford to buy goods and services with cash. As a result, they are turning to credit cards to spread out the cost of their purchases. This increase in credit card use is having a number of impacts on the Argentine economy, both positive and negative. It will be interesting to see how this trend develops in the coming months and years.

The use of credit cards in Argentina has increased in recent months, due to a combination of factors, including inflation and the return of the Now 12 plan.

The increase in credit card use has led to an increase in consumer spending, which has helped to boost economic activity. However, it has also put upward pressure on prices.
The increase in credit card use has also led to an increase in debt. The average Argentine now owes around $10,000 in credit card debt. This debt could become a problem if interest rates rise or if the economy enters a recession.
The increase in credit card use is a sign of the times. Inflation and the return of the Now 12 plan have made it more difficult for people to afford to buy goods and services with cash. As a result, they are turning to credit cards to spread out the cost of their purchases.

Here are some of the things to consider when using credit cards:

Be aware of the interest rates and fees associated with credit cards.
Only use credit cards for purchases that you can afford to pay off in full each month.
If you cannot pay off your credit card balance in full each month, make sure to make at least the minimum payment.
Be careful not to overspend on credit cards.If you are struggling to manage your credit card debt, there are a number of resources available to help you. You can talk to a credit counselor, or you can contact your credit card company to see if they have any debt relief programs available.