Brazilian Families’ Indebtedness and Consumer Default Remain High in August

RIO DE JANEIRO, BRAZIL – The study was released on Friday, September 13th, by the National Confederation of Commerce of Goods, Services, and Tourism (CNC).

The percentage of families with debts (not necessarily in arrears) reached 64.8 percent in August, up from 64.1 percent in July this year and 60.7 percent in August last year.

Meanwhile, defaulters reached 24.3 percent, up from 23.9 percent in July and 23.8 percent in August last year.

Conversely, the percentage of families who declared they were unable to pay their bills or debts in arrears dropped to 9.5 percent in August. In July this year, they were 9.6 percent and 9.8 percent in August 2018.

According to CNC‘s President José Roberto Tadros, even with the increase in indebtedness and default, Brazilian families were more optimistic regarding their ability to pay.

“The reduction in income commitment in the monthly comparison and the prospect of extra income from the Severance Premium Reserve Fund (FGTS) and the PIS/PASEP (Social Integration Program/Civil Servants Asset Development Program) help explain this result”.

Among families with overdue bills or debts, the average time in arrears decreased from 64.4 days in August 2018 and from 64 days in July to 63.2 days in August this year, in monthly and annual comparisons.

The average time of commitment to debt was also reduced, from 7.1 months in August 2018 and 7 months in July this year to 6.9 months in August this year.

Source: Agência Brasil

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