The default rate on credit cards, overdrafts, personal loans and other types of consumer credit should fall to 5.42% in July, according to a forecast by the Brazilian Institute of Retail & Consumer Market Executives (Ibevar) and the FIA Business School.

This figure represents a fall of 0.15 percentage points (p.p.) compared with the last real figure published in May 2024, and is an average within the range of 5.13% to 5.7% calculated taking into account a reduction in payment arrears calculated by the Central Bank (BC) – those exceeding 90 days.

In June, the National Confederation of Commerce (CNC) calculated that the percentage of Brazilians in debt remained at 78.8%, which, according to the organisation, indicates a stabilisation in the demand for credit by families.

However, the number of families that were late with their bills, as recorded by the Central Bank, reached the highest percentage since 2024, the CNC said.

Original Story: CNN Brazil | Author: Marien Ramos
Edition and translation: Prime Yield