On different occasions, experts have mentioned the need for financial education among the Costa Rican population. From implementing and adhering to budgets to having a conscious control of expenses, these are part of the habits that need improvement.
This has an impact on the way debtors behave in the country, and similarly, experts have managed to identify the areas for improvement for those applying for loans at national financial institutions.
Ana Laura Bolaños, a financial expert, explains that “Costa Ricans lack a conscious management of money, which is essential for improving the health of our personal economy. For example, in the collection process, we see how many people apply for credit but are not aware that they must pay it back on time, as they do with other expenses like public services.”
“This may be due to the fact that, unlike the financing provided by entities, the lack of timely payment of electricity or phone bills leads to an almost immediate consequence, which is the suspension of the service, while with loans, the implications are seen more in the medium term, starting with the accumulation of interest,” Bolaños elaborates.
This is how the following opportunities for improvement for Costa Rican debtors can be listed:
Make the decision consciously and responsibly:
On many occasions, Costa Ricans do not take the time to review their monthly budget, which will determine whether there is a real need to request the loan and, above all, if their current income covers the monthly payment of the installment. Otherwise, it can turn into an impulsive decision and lead to negative consequences in the short and medium term.
Carefully review the credit application documents and ensure you understand all the terms. Collection experts have encountered cases where financial users are not familiar with basic aspects such as paying current interest or signing the documents of the procedure without understanding all the terms and conditions included. It is important for people to take the time to read carefully and clarify any doubts if they exist, as every detail included is crucial in the entire process.
In case of delay, respond to calls or other forms of communication from the entities: There is a perception that financial institutions are becoming enemies of their clients. However, if there are outstanding payments, creditors may offer payment arrangements and solutions to regularize the accounts. The faster you respond to calls or other means of communication, the fewer attempts will be made to contact people to reach an agreement. It is worth noting that each entity has different ways of sending payment reminders.
Understanding the implications of delinquency:
All financial entities establish different late fees (in accordance with what the law stipulates), but in general, one must consider, in addition to the current interest, late interest and administrative charges for debt management. This, combined with the overdue fee or fees, adds up to a significant amount of money, considerably greater than the original debt. Those who do not reach any payment agreement are exposed to legal proceedings or seizures. Likewise, their credit history is tarnished, closing doors to future financial tools.
Make sure that the payment was correctly recorded:
There are currently a large number of channels for making payments; however, not all of them register the transaction immediately. For this reason, it is important to report the cancellation or send the proof through the means established by each entity. Ensuring that the payment was made correctly is part of the commitments undertaken when applying for a loan.
At the same time, experts are urging people to stay alert to content on social media, where through videos and posts, it is suggested to stop paying debts, wait for debts to expire, or look for legal loopholes to evade their financial responsibilities.
“We urge the public to seek accurate information before making decisions that could affect their financial stability.” It is crucial to understand what a promissory note is, what type of interest applies, what the loan conditions are, what the clauses of the contract imply, and even each stage of the administrative and judicial collection process. “Understanding these details in depth allows for more secure and informed financial decisions, avoiding falling into the traps of misinformation,” adds Ana Laura Bolaños.
Most dangerous months
According to information gathered, September and October are precisely the months in which the highest delinquency is reported. The main reasons for the delays expressed by financial users are the high cost of living and the current economic situation of the country.
If anyone is having trouble making their payments, it is recommended to approach their financial institution and explain their situation. In most cases, there are renegotiation options that will allow you to adjust your payments to a changing economic reality. Maintaining good communication with the financial institution can prevent many headaches and protect your credit health.