A survey by the National Association of Finance, Administration and Accounting Executives shows that the annual rate reaches 371.25%.

Credit card interest rates in Brazil rose for the fifth month in a row, standing at 13.79% in May. The 0.8% increase applied to the rate last month is the highest since June 2018. The rate reaches 371.25% per year, according to data from the National Association of Finance, Administration and Accounting Executives (ANEFAC).

The rise also occurred with the overdraft check, which had annual interest of 150.14%, recorded last month. ANEFAC warns of an even more pessimistic scenario in the coming months.

The researchers responsible for the study predict the maintenance of high costs for short-term credit in the face of an economic environment of greater risk, combined with an increase in the number of defaulters and the Selic rate.

For the executive director of Studies and Economic Research of the association, Miguel José Ribeiro de Oliveira, care must be taken not to acquire debt at this time. “High inflation corrupting family income, high interest rates making credit more difficult and expensive, more selective banks and extremely high unemployment.

Original Story: CNN Brasil | Rayane Rocha / Thayana Araújo 
Photo: Photo by Wundelman in FreeImages
Translation & Edition: Prime Yield