Almost 8 out of 10 families in Brazil are in debt, whether they are in arrears or not. This is the highest proportion of indebted since the beginning of the Survey of Consumer Indebtedness and Delinquency (Peic), in 2010, according to the National Confederation of Trade of Goods, Services and Tourism (CNC).

The current rate of indebted families is 77.5%. In February, the percentage was 76.6%. In March last year, the rate was 67.3%, according to Peic.

According to the analysis, these figures point to the trend of increasing indebtedness, even though market interest rates are higher and make credit more expensive. According to recent data from the Central Bank (Bacen), average interest rates in credit lines with free resources to individuals increased from 39.4% in January 2021 to 46.3% in January 2022.

In a statement, the president of the CNC, José Roberto Tadros, says that the result of the survey reflects the pressure of inflation on budgets, even in the face of the increase in the basic interest rate, which would have the role of reducing the demand for credit. “This high, persistent and disseminated inflation keeps the need for credit high to recompose income, causing families to find third-party resources as a way to maintain their level of consumption,” he notes.

Original Story: Infomoney | Mariana Amaro
Photo: Photo by Afonso Lima on FreeImages
Translation and Edition: Prime Yield