The number of people in arrears in Brazil has again hit a record high. According to data from Serasa Experian, the country recorded 67.9 million defaulters in August, the highest figure since the survey began in 2016.

This represents a rise of 300,000 people compared to the previous month, or 0.5% in percentage terms.

The institution points out, however, that the month recorded a high number of debt negotiations, which reached 2.8 million debts – this is 22% more than in July, which gave a brake on the growth of arrears in the country.

“As Brazilians are on a tight monthly budget, debt negotiation with hire purchases was a solution sought to increase the number of regularization of debts, which in fact occurred,” he continues.

According to Serasa, the month had the second highest volume of renegotiations, second only to March. That month, there was the Feirão Limpa Nome Emergencial, which renegotiated more than 3.7 million contracts.

Banks and credit cards continue to account for the majority of debts, 28.8% of the total. Then come the basic bills such as water, electricity and gas, with 22.1%. In third place is the financial sector, with 13.8% of the total.

In the breakdown by region, São Paulo led the number of defaulters, with 16,072,592. At the other end, Roraima was the state with the fewest defaulters, 214,557.

Original Story: G1 Globo | G1
Photo:Photo by Bruno Leiva in FreeImages.com
Edition and translation: Prime Yield