Business

How the prohibition of purchase in installments will impact on the payment of tickets abroad

Photo: EFE / Cristóbal Herrera
Photo: EFE / Cristóbal Herrera

The inability to pay in installments for tickets, hotels, car rentals and any other services abroad will force travelers to seek other forms of financing that, in most cases, will be more expensive. This disincentive to travel abroad is what the Central Bank seeks so that the dollars that feed its diminished reserves do not leave the country.

Credit card installment financing is the most common way to finance the purchase of these services. And Black Friday, the mega commercial promotion that this time was going to have a strong focus on travel, was going to be a great opportunity to buy tourist packages for the summer. Faced with the prohibition of financing with quotas, the first alternative to not paying in cash is to use credit card financing, that is, pay the minimum payment and then pay the corresponding interest on the balance.

An important point to evaluate the price to pay for a ticket abroad is the enormous tax component that it entails
An important point to evaluate the price to pay for a ticket abroad is the enormous tax component that it entails

This option has a maximum rate of 43% for balances that do not exceed $ 200,000 per card. In the case of paying a balance above that figure, the rate has no limits and is therefore significantly more expensive. According to the survey of Infobae posted yesterday, a typical family needs to pay $ 348,000 to fly to Florianopolis, Brazil. If you cannot pay it in installments, you will surely pay higher interest than the 43% cap.

Given the prohibition of financing with installments, the first alternative to not pay in cash is to use credit card financing, that is, pay the minimum payment and then pay the corresponding interest on the balance

The big decision will have to be made by those who have dollar bills in their possession and face this payment. Should they finance themselves with the bank or, on the contrary, sell their dollars and pay off the debt? Whoever believes that the free dollar or “blue” will rise more than 43% per year, should accept the rate charged by the bank and keep their bills. Those who, on the contrary, believe that the dollar is going to rise below that level, will find it more profitable to sell their dollars to pay off the debt.

It is convenient to finance with the bank or, on the contrary, to sell the saved dollars
It is convenient to finance with the bank or, on the contrary, to sell the saved dollars

Another option is to take a personal loan to buy services abroad. The interest rate and the expenses that make up the Total Financial Cost (CFT) of that loan is usually well above that maximum 43% that is charged to finance with the card. Practicality is also important: paying with a card in installments is extremely simple, while some banks require additional procedures to grant a personal loan. And even the limits: the credit card usually has caps to buy in a single payment that often became outdated in the face of inflation. In a personal loan there is no such problem.

The big decision will have to be made by those who have dollar bills in their possession and face this payment. Should they finance themselves with the bank or, on the contrary, sell their dollars and pay off the debt?

Outside of financing, another important point to evaluate the price to pay for a ticket abroad is the enormous tax component that it entails. Every time a ticket is purchased, there are taxes and financial costs that double the price of the pure rate. This was explained yesterday in a statement by the Chamber of Air Companies in Argentina (JURCA), expressing its rejection of the Central Bank measure.

“This is a new blow to our industry, which is still in the recovery stage from the worst crisis in its history. Only in our country, in recent times we must bear in mind that 30% of the PAIS Tax is applied today, 35% of Perception + 7% of DNT (Tourism Tax) + 45% of Financing = 117% of the value of the rate., ”Said the statement from the airlines. If the payment is made by credit card in the City of Buenos Aires, you have to add a strawberry in the dessert: 1.2% of the stamp tax.

KEEP READING:

Given the lack of dollars, the Central Bank prohibited credit cards from selling tickets abroad in installments
Strong criticism of the agencies after the BCRA ban: “It will have a full impact on Black Friday”
For economists, the ban on ticket fees confirms the dramatic lack of dollars

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HELEN HERNANDEZ

Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Helen@oicanadian.com Phone : +1 281-333-2229

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