Brazil recorded 65.2 million consumers in default in February, Serasa reported. This mark had not been reached since May 2020, at the beginning of the Covid-19 pandemic. These citizens have R$263.4 billion in negatived debts (in arrears).

In February alone, the number of defaulters rose 0.54%. Each Brazilian owes an average of R$4,042.08. The statistic is based on the fact that each Individual Taxpayer Registry (CPF) number has, on average, 3.4 active debts.

In relation to the profile of the defaulters, men represent 50.2% of the debtors, against 49.8% of women. In the age bracket, most are between 26 and 40 years old (35.3%), followed by 41 to 60 years old (34.9%).

The total number of consumers in default had been falling since April 2021, but has been rising steadily since October of last year. According to Serasa, the recent interest rate hikes, which make credit more expensive, and the still high unemployment are the main causes of the rise in delinquency.

The fall in the average income of the worker also affects the payment of debts. Even with the gradual recovery of the labour market in recent months, most people are finding jobs that pay less than the previous one, which increases the difficulty in paying off debts in arrears.

Among the types of defaulted debts in February, according to Serasa, 28.6% come from credit card debts. In second place are debts with household bills (water, electricity and gas), which account for 23.2%. In third place are spending on retail, which totalled 12.5%.

Original Story: Diário do Nordeste | Agência Brasil
Photo: Photo by Cesar Fermino on FreeImages
Translation and Edition: Prime Yield