A new law would help highly indebted people. They will be able to pay just ₡12,000 ($20.50) interest per million ($1,700). The bill would allow people to consolidate all their loans into one and obtain a much lower monthly fee.
This would improve individual liquidity which would have a beneficial effect on the larger economy. The initiative is known as Salvage Credit and is promoted by the Government.
It would offer an interest rate of 12%. It will be available to salaried public and private employees but not freelancers. The ideal candidate would make a monthly salary of ₡1 million and have a debt of over ₡400,000.
The average monthly installment for a debt of ₡5 million is ₡130,000 with an interest rate of 20%. This payment could go down to ₡60,000 under the new modality with a term of 15 or 20 years. To qualify, the debt would have to be taken out of the salary by the employer and the client would have to take financial education classes.
