Default rates are at their lowest level in 22 months. This is indicated by a monthly survey carried out by the National Confederation of Trade in Goods, Services and Tourism (CNC). The percentage of households in arrears closed January at 28.3%, the lowest level since March 2022.

And defaults fell more among lower-income families. The survey registered a drop of more than 3 percentage points year-on-year; 35% of families with an income of up to 3 minimum wages are in default. Despite finding it more difficult to pay, almost 30% of these consumers believe they are little in debt.

Felipe Tavares, CNC’s chief economist, believes that the figures show a positive scenario for lower-income families in 2024.

With regard to debt, 78% of families reported having debts due in January, an increase of 0.5 percentage points compared to December.

Original Story: Agência Brasil | Author: Fabiana Sampaio
Edition and translation: Prime Yield