Credit card debt management and legal implications in Chile and Argentina

Credit card users face different financial implications regarding minimum payments and debt management in Chile and Argentina.

In Chile, a new formula for determining the minimum payment began a gradual implementation on June 4, 2026. This calculation includes non-financeable components such as interest, commissions, and other charges, alongside a portion of the financeable balance. While paying the minimum meets the period's requirement, it does not settle the debt; instead, the remaining balance carries over to the next period and continues to accrue interest.

In Argentina, failure to pay credit card balances can lead to punitive interest rates exceeding 100% of the Total Financial Cost (CFT) and legal actions by banks. Under current regulations, banks have specific timeframes to pursue debt: one year to initiate executive actions and up to three years for ordinary actions. If these legal periods pass without a formal judicial claim, the bank loses the right to demand payment through court. However, debt does not automatically vanish from financial records after prescription; the debtor must explicitly invoke it to make it legally valid.