Number of indebted families rises in Brazil

The number of families who reported indebtedness due to postdated checks, credit cards, overdraft, payment booklets, personal loans, car installment payments and insurance reached 62.3% in April this year, against 61% in March, and slightly below its 2013 counterpart, 62.9%.

These figures were published on Tuesday (Apr. 29) in a study entitled Survey on Consumers’ Indebtedness and Default (“Peic”) by Brazil’s National Trade Confederation in Goods, Services and Tourism (“CNC”).

The percentage of families who reported not being able to pay their bills or overdue debts, remaining therefore delinquent, dropped in comparison with April (6.9%) and March (7.1%) 2014, but rose against the rate ed in April 2013 (6.7%).

According to CNC, the growth in the number of families in debt, when the previous month is taken into , occurred in both income groups surveyed. In the yearly analysis, a fall was detected only in the higher income group.

Among families with a monthly income of up to ten minimum wages (which amounts to $3.236 thousand), the percentage of families in debt stood at 64.1% in April, against 63.5% in March, and 63.8% in April last year.

As for families with earnings totaling over ten minimum wages, those facing indebtedness grew from 49.6% to 53.3% in March-April. In April 2013, in turn, this rate stood at 58.5%.

This survey has been conducted on a monthly basis by CNC since January 2010. The data are collected in the capital cities of all of the country’s 26 states and the Federal District, with approximately 18 thousand consumers.

Translated by Fabrício Ferreira