The percentage of Brazilian families who say they have debts that are due, such as credit cards, overdrafts, shop bills, personal loans or car and house payments, among others, continues to fall, reaching 76.1% in January this year. This is a fall of 0.6 percentage points compared to December 2024 and 2 percentage points compared to the same period last year.
The figures come from the Consumer Indebtedness and Default Survey (Peic), organised by the National Confederation of Trade in Goods, Services and Tourism (CNC). The data for the study were collected from all the state capitals and the Federal District. and the Federal District, with around 18,000 consumers.
According to the authors of the study, the downward trend “highlights the caution of consumers in taking on debt at a time of high interest rates and a tendency for further increases”. This is borne out by the number of families who said they felt ‘very indebted’, which reached 15.9 per cent, the highest level since September 2024. On the other hand, the number of those who said they had ‘no debt’ of this kind rose to 23.9 per cent.
On the positive side of this greater concern, the proportion of families with debts in arrears fell to 29.1 per cent, down from 29.3 per cent in December. However, the figure for January this year is higher than that for January 2024, which was 28.3 per cent.
On the other hand, the proportion of families who said they were unable to pay their outstanding debts fell for the first time since July last year, to 12.7 per cent. This is lower than the 13 per cent recorded in December 2024, but higher than the 12 per cent recorded in January last year.
According to the CNC, the figures are a ‘warning sign for the economy in 2025′. This view was expressed by the president of the CNC-Sesc-Senac system, José Roberto Tadros, in a statement issued by the organisation. High interest rates and selective credit mean that consumers are trying to take on less debt and, as a negative effect, are increasing their perception of indebtedness. The slight improvement in delinquency shows that Brazilian households have made an effort to balance their finances, but the growing commitment of income is a warning sign for the economy in 2025,’ he says.
The Consumer Indebtedness and Delinquency Survey also shows that consumers are managing to pay their overdue bills more quickly, with the percentage of households with debts overdue by more than 90 days falling to 48.9 per cent in January, the third consecutive month of decline.
However, the number of consumers with more than half their income tied up in debt rose to 20.8 per cent, the highest since May 2024, bringing the average income tied up in debt to 30 per cent in January.
Despite the improvement in payment times, debt is consuming a greater proportion of household income, partly due to the reduction in payment terms. Nevertheless, the proportion of families in debt for more than a year fell for the first time since May 2024, reaching 35.9 per cent.
For the authors of the study, the rise in interest rates is restricting credit and forcing consumers to devote more of their income to debt repayments, which is exacerbating the feeling of indebtedness.
The CNC predicts that household indebtedness is likely to increase this year, as families will need to borrow for consumption despite high interest rates. This should keep defaults at a low level in 2025, according to the organisation’s analysis.
The CNC’s survey revealed which debts are the most recurring for Brazilian families. Credit cards top the list, followed by bills, personal loans and home loans.
Original Story: Estadão
Edition and translation: Prime Yield