While the US federal bank rate is virtually running at 0 (.25%), rich Mexico can still afford to peg its rate at 7.75%. While a mortgage in the US will cost you around 5.5%, the poor in Mexico are lucky to get something around 12% with a 25% down payment.
Here in beautiful downtown Catemaco, Veracruz, nobody worrries about mortgages, because there virtually are none. Almost all homes are owner financed. Other credits are what's killing the local and national entrepreneurial spirit. Credit card rates are routinely near 40 %, car loans, if you are lucky, around 20% and if you are unfortunate to use one of the zillions of unregulated pawnshops, which provide most of the credit needs of the lower classes, you can expect to be raped above 100%.
The 10 families who basically control Mexico, could care less. And neither could Mexico's Walmart which has a nifty 69.9% credit card.
Nope I am not making this up, read more here:: In Mexico, credit is available - at a 70% interest rate
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