If you are one of 30% of Brazilians who takes out in-store credit to pay in installments*, remember that the tempting monthly payments usually hide exorbitant interest rates.
Let’s take the purchase of a R$1,000 LED TV divided in 24 monthly installments as an example. At the end of this period, based on an average interest rate of 5.5% per month*, you will have paid over R$3,500 – or, in other words, more than three times the original price!
Make sure you actually need to buy a new product to replace an old one and, if so, that the monthly payments fit nicely into your household budget; or pay using other types of credit to avoid buying one product and end up paying the price of three.
**Average in-store credit interest rate for the electronic goods sector (August 2017), according to the National Association of Finance, Administration, and Accounting Executives (ANEFAC, acronym in Portuguese)