A recent survey by the Locomotiva Institute revealed that the majority of Brazilians are apprehensive about the possibility of the interest-free installments on credit card be extinguished.
The study, carried out between August 30 and September 11, 2023, analyzed how this payment method is fundamental in the lives of the population. Find out more below!
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According to the data, 80% of those interviewed stated that they would have more debts if interest-free installments ceased to exist.
Renato Meirelles, president of Instituto Locomotiva, highlighted that, in the long term, people would stop buying or pay more, as many do not have the resources to pay in cash.
In this sense, he emphasized that the problem lies in high interest rates, not in the installments themselves. Another important factor indicated by the research concerns people who would buy less if they could not pay in interest-free installments.
This group includes 78% of respondents. This would especially affect sectors such as household appliances, electronics, airline tickets, accommodation and education.
Furthermore, around 67% of the population is against the end of interest-free installments on credit cards. Among those who use this modality, 77% were against its end.
In this regard, Renato Meirelles highlighted the importance of credit cards for the low-income population, that he uses installments as an extension of the salary to guarantee financial balance until the end of the month.
(Image: disclosure)
The study showed that credit cards are the main means of payment in emergency situations. Around 51.8 million Brazilians would use card installments to cover an unexpected expense of R$500 or more. Only 23% would have money to pay immediately, while 31% would choose another payment method.
The survey also highlighted that 75% of respondents believe that interest-free payments make it possible to purchase material goods. This is particularly evident in categories such as home appliances, travel and electronics.
In conclusion, the Instituto Locomotiva research highlights the relevance of interest-free installments on credit cards. In practice, it demonstrates how this payment method helps to balance finances and achieve goals.
Furthermore, it highlights the population's concern about the possible elimination of this option and the financial implications that this could entail.
The research also mentions the actions of the government and Congress to reduce card interest and default, as well as the ongoing discussions on the regulation of interest-free installments, which have generated debates between large banks, retail and fintechs.
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