Brazil: Indebtedness reached record high in September, says CNC

On Monday, October 10, Brazil’s National Confederation of Trade of Goods, Services, and Tourism (CNC) said indebtedness reached 79.3% of Brazilian households in September.

The Consumer Indebtedness and Delinquency Survey (Peic) showed that this is the record of the historical series in Brazil, which began in 2010.

It rose 0.3 percentage points compared to August. It was also the 3rd consecutive increase in 2022.

The CNC stated, however, that the rise in household indebtedness slowed down compared to previous months.

Compared to September last year, the total number of households with debts falling due rose 5.3 percentage points. That is the lowest annual rate since July 2021.

Indebtedness among families earning less than ten minimum wages rose to 80.3%, also the highest level in the historical series. It was the first time that Peic surpassed the 80% level.

Among families with higher incomes, the proportion of those in debt remained stable at 75.9%.

The default of consumers who have delayed paying their debts reached 30%, the highest level since the beginning of the survey. It was the third consecutive increase, up 0.4 percentage points in September.

In one year, the indicator for overdue debts advanced by 4.5%, the highest annual rate since March 2016.

With information from Poder360

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