Credit Card Debt Increasing In Costa Rica
The strong advertising campaigns by banks and financial institutions, along with offers and bonuses like travel miles and purchases, to attract customers to sign up for a credit card has resulted in the growth of debt in the country, estimated to be at 20%.

According to a study by the Ministerio de Economía, Industria y Comercio (MEIC), there are 1.5 million credit card holders in Costa Rica with 331 different types of cards.

MEIC officials are concerned that having so many credit options, consumers will easily get into more debt and could bring financial ruin for those who don't use their cards wisely.

"We hope that consumers are using their credit cardd in a rational and intelligent manner, that they read the contracts before taking the offers before them while taking advantage of the benefits offered, like insurance, medical benefits and travel", said an MEIC official.

A Cid Gallup poll shows that one out of three Costa Ricans over the age of 20 has a credit card.

One bank - Banco Banex -  is luring credit card customers from other banks by offering to pay off the credit card debt made at the other bank and charging no interest for up to three months.

MEIC officials say that the paying interest in Colones will cost you more and customers should be careful, because, some cards in addition to the interest, also charge a yearly or monthly fee for their use.

Interest rates on credit cards can be as high as 35.76% per year on dollar accounts and 49.92% on Colon accounts, like that charged by Aval, being the most expensive and with one of the largest number of credit card products.

The largest issuer of credit cards products in Costa Rica is Credomatic with 58, while the Banco Nacional offers 36 credit cards in contrast to Banco de Costa Rica's only 5 cards, while private banks like Scotiabank have only 2 credit card products on the national market.