Credit card interest rate at 395.3% per annum
The interest rate for revolving credit on credit cards reached 395.3% per annum in July, a record-high for the historic series started in March, 2011. 
The interest rate for revolving credit on credit cards reached 395.3% per annum in July, a record-high for the historic series started in March, 2011. Data were released today (Aug. 26) by the Central Bank (BC). Compared with June, the average rate surged 23.2 percentage points.
Revolving credit is the operation which allows customers to pay only part of their credit card bill and settle the remainder of the debt the following month. Cash withdrawals on the credit card are also included under revolving credit.
The head of BC's Economic Department, Tulio Maciel, recommend that consumers avoid resorting to revolving credit. “Costs are very high indeed. Our customary advice is that revolving credit should be used in special circumstances and for very short terms.”
The interest rate for purchases under an installment plan arranged with the credit card operator, and cash withdrawals on the credit card to be paid back in installments rose 1.3 percentage points from June to July, amounting to a yearly 119.5%.
Interest for overdraft climbed 5.6 percentage points to 246.9% per annum from June to July.
For automatic paycheck deduction loans, the interest rate went up 0.5 percentage points, reaching 27.8% per annum.
Credit for car purchases fell 0.2 percentage points, and stands at 24.5% per annum.
Translated by Fabrício Ferreira
Fonte: Credit card interest rate at 395.3% per annum
