Cash continues to be the preferred payment instrument for the public and businesses in Colombia. This is indicated by the Bank of the Republic, after a survey on the use of payment methods in the country.
(More than rates: what you need to know to apply for a credit card).
However, regular cash transactions are made in small payments. For larger operations, Colombians prefer credit options, which allow them to pay the final amount in installments.
Nevertheless, with the rise in interest rates and the increase in the cost of credit, some people have stopped their purchases through this method and prefer to pay cash in order to avoid the high fees or even abstain from making the purchase.
Among the advantages offered by the use of cash, immediacy stands out. There are no additional commissions or intermediaries. It also avoids having to make new payments and gets rid of monthly interest.
(Colombia does not rule out new interest rates).
However, most people do not have enough cash for large purchases and although this could be solved with savings, urgent purchases can be at risk.
Another big problem is counterfeiting and accounting complexities.
(Other credits to which the rate reduction would also apply).
On the other hand, the credits can be effective to obtain products of high amounts, without having to wait so long. It also has additional benefits that can help solve interest rates.
This option is the most convenient as long as there is control of expenses.
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