The number of people with bad credit has reached a record high, revealing the challenges consumers face in balancing their budgets.

Brazil has reached a historic milestone in terms of population indebtedness: there is currently almost R$500 billion in active debt distributed among 79 million consumers who have defaulted on payments. The data comes from Serasa’s Default Map, which shows nine consecutive months of increases, with 318,000 new defaulters added in September alone.

According to the report, the country has accumulated 313 million active debts, with an average value of R$6,274.82 per person. Most of these debts are related to banks and credit cards (27%), followed by basic bills such as electricity and water (21%), and non-bank financial companies (19.9%).

São Paulo continues to have the highest default rates, with 18.6 million people in default and debts totalling R$133.7 billion. In September, 55,400 new consumers joined the list of debtors, representing a 0.3% increase compared to August. The average debt per person in the state is R$7,175.46, with the main debts relating to basic bills (28.5%), banks and credit cards (27.3%), and financial companies (20.1%).

Original Story:  Consumidor Moderno | Author: Bianca Alvarenga
Edition and translation: Prime Yield