Debts have been the main source of headaches for Brazilians for some time. And the month of July was no different: Brazilian family debt reached 78% in the month, the highest rate recorded in the last 12 years, according to research by the National Confederation of Commerce in Goods, Services and Tourism (CNC).
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Inflation – perceived by the increase in prices – weighed on the pockets of the poorest families, according to the research.
The second half of 2022 has already started with 29% of Brazilian families in default, that is, with some type of overdue bill or debt. This is the highest percentage of defaults recorded since 2010, when the Consumer Debt and Default Survey (Peic) began.
Not even the measures created by the federal government to give that little push – extra withdrawals from the Severance Indemnity Fund (FGTS) and the anticipation of the 13th salary for INSS beneficiaries – were enough.
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Do you know the difference between debt and default?
In the most uncomplicated way possible: when the consumer manages to pay their debts, they are just indebted. Example: you paid the purchase of a bike in 5 installments on your card. And you can pay your bill every month. Therefore, you have a debt, but you are able to pay it.
From the moment you stop paying the installments, that is, the debt incurred, the consumer is in default. A person becomes a defaulter when they start to have outstanding debts. You know that thing about “rolling the debt forward”? Ready. This is default.
Research
In the CNC survey, the percentage of debt in Brazilian homes increased by 0,7% in July, compared to June. The increase in default was 0,5%, also in relation to the previous month.
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Since April, the percentage of families withprometheir income from debts is 30,4% and more than 22% of Brazilians have more than half of their salaries withpromeowed debts.
Less education, greater chance of default
In July, 13% of consumers who do not pay their bills or debts did not complete high school. These were also those who most needed to delay payments in the month of July itself (33,3%).
For families that earn more than 10 minimum wages per month, debt contracting rose again (0,8%) after two months of reduction. Debt grew less (0,6%) among those who receive up to 10 salaries.
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“The expense classes of families that earn less are precisely those that have seen the biggest recent price increases, so they end up spending a larger portion of the budget to face the increase in inflation. In other words, families with lower income were more affected and increased their debt, despite high interest rates, to sustain their level of consumption.”, explains Izis Ferreira, economist at CNC, responsible for the research.
Curto curation:
- See more research data. (Commerce Portal)
Featured photo: Marcello Casal JR/Agência Brasil
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