What Happened
Credit cards are playing a bigger role in everyday spending in Panama as households face tighter budgets and weaker liquidity. Many consumers are relying on plastic to buy food, cover basic expenses and meet other obligations that are harder to pay in cash.
By the end of February, credit card balances reached $2,817 million, according to the Superintendency of Banks of Panama. That figure was up 8.14% year over year, adding $212 million compared with February 2025, when balances stood at $2,605 million.
Broader Consumer Credit Growth
The rise in card use comes alongside a broader expansion in consumer lending. Personal consumer credit grew 5.4% in the same period to a total outstanding balance of $15,121 million. The increase was supported not only by credit card spending, but also by financing for durable goods such as vehicles, which posted an 11.4% increase in balances, and by personal loans, which grew 3.4%.
The trend reflects a consumer market that is still active, even as borrowing costs remain elevated. Higher interest rates, more expensive fuel and the possibility of rising food and basic goods prices are adding pressure to household purchasing power.
Interest Rates and Cost of Borrowing
By December 2025, the average credit card interest rate had reached 22.07%, up from 21.71% in December 2024, according to banking regulator data. Rates vary by bank and by the type of card, but the overall cost remains high compared with other forms of credit.
Acodeco’s review of card costs in the country shows that the lowest rate among credit cards is 11% for business cards, while commercial cards range from 22.9% to 28%. Annual fees also vary widely, from $40 to $84 for some cards and from $85 to $160 for others.
Debt and Delinquency Risks
The growth in card use is raising concern about delinquency. Paying only the minimum monthly amount can leave most of the balance untouched while interest keeps building. Financial guidance from Marta Luna recommends paying the full amount used whenever possible to avoid extra charges.
APC Experian, which tracks credit history for 2.52 million clients across banks, cooperatives, finance companies and other lenders, reported total debt in Panama at $41,653 million, spread across more than 5.2 million active credit obligations. That total includes mortgages, personal loans, auto loans and retail installment debt, along with credit cards.
Within that broader system, bank-issued credit card balances continued to rise in February to $2,972 million, a figure that is higher than the Superintendency of Banks’ number because it also includes financing from other institutions. Panama had 876,906 active credit cards, with an average balance of $3,390 per cardholder.
Delinquency is among the highest of all financial products. For bank-issued cards, more than two-month delinquency stood at an average of 9.13%. For finance companies, where roughly $30 million in card balances are recorded, delinquency was even higher at 19.14%.
Why It Matters
The rapid increase in credit card use shows how many Panamanians are turning to short-term borrowing to manage day-to-day expenses. But the combination of high interest rates and rising delinquency creates a risk of deeper household debt, especially for consumers who rely on minimum payments.
The experience of a $1,000 balance plus an additional $200 purchase illustrates the pressure. At an annual rate of 22%, a minimum payment of about $60 would send only a small portion to principal, while most would go to interest. That makes balances fall slowly and increases the overall cost of borrowing over time.
In January alone, banks issued more than 17,000 new credit cards, underscoring how widely the product continues to expand across the country.