The loans used to pay off credit cards
A study by the Center for Economic and Financial Development in Argentina (CEFID-AR) revealed the majority of loans to individuals were used to pay off debts caused by credit cards.
The report also announces the granting of credit to private rose 1.2 percent in January, for the past month and 11.5 percent from January 2009. Until now, private loans totaling 120.5 thousand million pesos.
Among the explanations for the increase of credit card financing, analysts take into account a strong seasonal component in January, because there is usually a high consumption and payments for the holidays with plastic during December for the holidays, which may explain the greater tendency to refinance the balance. Another argument is more inclined to pay in installments.