Record debt among Brazilian families, surge highest reported since January 2010

The National Confederation of Commerce of Goods, Services, and Tourism (CNC) revealed that the percentage of Brazilian families with overdue debts increased by 0.2 percentage points in June, reaching a record high of 78.5 percent.

This surge in debt is the highest reported since January 2010 when the survey began.

Out of all households with outstanding payments, 18.5 percent are classified as highly indebted.

The rise in indebtedness breaks a four-month period of stability in this indicator, according to the CNC.

José Roberto Tadros, the president of the CNC, emphasizes that the growing indebtedness and delinquency rates in Brazil are negatively impacting the consumption capacity of families.

He highlights the need to find a balance between price stability and economic growth, which will play a crucial role in the country’s recovery.

Despite the overall increase in indebtedness, the survey indicates that the average percentage of income devoted to debt has reached its lowest level since September 2020, standing at 29.6 percent.

This improvement can be attributed to the rise in income among consumers earning up to 10 minimum wages, driven by a more favorable inflationary environment since the end of last year, as noted by economist Izis Ferreira, who prepared the report.

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