Credit card debt is on the rise in Costa Rica, reported the Ministry of Economy, Industry and Commerce today.

Over a 5-year period (from April 30, 2012 – April 30, 2017), the balance of credit card debt in the country has grown by 51 percent, with 21 percent of that growth occurring just in the past year (April 30, 2016 – April 30,2017).

The debt has increased alongside a 60 percent increase in the number of cards issued in the last five years, said the ministry in their latest quarterly study of credit and debit cards.

The balance of debt as of April 30, 2017 stood at ¢1,098,957 million, which represents 3.66 percent of the gross domestic product. On the other hand, the number of cards grew 11 percent compared to April 2016, for a total of 2,476,844 credit cards currently in circulation.

An increase in the delinquency of debt repayment was also notable in this report, said the ministry. Default rate of 1 to 90 days went from 6.25 percent in the first quarter of 2016 to 7.67 percent in the first quarter of this year.

Carlos Mora, deputy minister of economy, industry and commerce, asked consumers to use their credit cards responsibly by paying on time, and also to limit the number of cards they have, and to minimize the use of cards for purchases.

The official explained that at least three-quarters of Costa Rican credit cards charge an annual interest rate in colones that ranges anywhere from 40 – 77 percent. Other cards charge a dollar interest rate of between 30 – 40 percent on all late payments.