Brazil: Total Of Indebted Families Highest In 12 Years

The percentage of Brazilian families in debt or with overdue bills in February was reported at the highest level since March 2010, as per data published in Rio de Janeiro today (Mar. 3) by the National Confederation of Trade for Goods, Services, and Tourism, or CNC.

“Reaching 27 percent of households, default in February was up 0.6 percentage points from January and 2.5 percentage points from February 2021. Those who declared not being able to pay their overdue bills or debts, thus remaining in default, also increased month on month, up 0.4 percentage points. The proportion reached 10.5 percent, the same as February last year,” the CNC stated.

Families who reported having debts due (like credit cards, overdrafts, personal loans, car and house payments) reached 76.6 percent in February. A year ago, the indebted added up to 66.7 percent, 9.9 percentage points below the current number.

Credit card

Credit card indebtedness showed the first shrinkage among indebted people since February 2021, but remains the main debt type of 86.5 percent of all indebted families. The indicator is 6.5 percentage points below February 2021 and is also 7.9 percentage points higher than February 2020, before the COVID-19 pandemic crisis.

More expensive credit in Brazil and the fragility detected in the labor market should continue to affect indebtedness dynamics and default among consumers, especially in a year with uncertainties brought about by the general elections.