Abstract: The classical Monte Carlo method is used to study the properties of the ground state and phase transitions of the spin–pseudospin model, which describes a two-dimensional Ising magnet with competing charge and spin interactions. This competition leads to the ground state degeneracy and the frustration of the system. It is shown that the ground state degeneracy is observed in the frustration area with nonzero probabilities of the formation of two different ordered states. Based on the histogram analysis of the Monte Carlo data, the type of phase transitions is analyzed. It is found that, near the frustration point, first-order phase transitions are observed in the dependence on the ratio between the spin (s = 1/2) and pseudospin (S = 1) interactions.