National and international events such as inflation, world geopolitical instability, and container crisis cause adverse effects on the country’s exchange rate. In an economy like Costa Rica, which is dependent, puts its population in complicated situations. This is how many people who keep credits in US dollars when their salary or income is in colones, are concerned about the rise in the dollar, which generates increase in the quotas of their credits.
Therefore, the first thing that people who are living that situation should do is not to despair and keep calm. Kimberly Quesada, head of the Coopenae Financial Advice Program, says that thinking of moving the quota to colones can force to pay more. “If you already have a credit in dollars, and you have felt tempted to pass it to colones, it is not always the best option. Many times increases in the exchange rate and interest rates are short -term and do not last too long. Sometimes refinancing a debt with currency change does not provide greater financial relief and rather it will incur commission and other costs”, Quesada explained.
The expert mentions that people must review the structure of their debts in dollars very well, and advise before making a radical decision. “If there may be options, however, before deciding you must meditate so that it does not pay more”, she said.
She analyzes the currency of her credit. Since the US dollar is a currency of habitual use in our country, the national economy is exposed to various pressures that are not in our control. “Consumers must pay special attention to two particular phenomena. On the one hand, there is the issue of interest rates, and the Federal Reserve in the United States, had already advanced that this year several increases in the reference rate were going to be made, this in order They have been feeling in the US economy for several months. As it is obviously, this fees level adjustment would have an immediate effect here in Costa Rica”, Quesada explained.
This is how goods such as houses, vehicles and other services or products, which are generally marketed and financed in US dollars, tend to experience an increase in fees paid for them.
The second phenomenon is that, if exchange rates are higher in the North American country, investors will probably want to take their money and this can generate a significant decrease in dollars in the country. “That situation would press the upward exchange rate. Here again, the national consumer who will have to get more colones to pay his debts in dollars”, said Quesada, who provides these recommendations:
• Do not run into dollar debts, if your income is in colones.
• Make financial scenarios (what is commonly called quota stress): This allows you to see how much could, under special conditions, continue paying without your budget suffering.
• Be cautious and very objective when planning to avoid being the object of disgust in other obligations.