Brazilian families end 2021 with record debt; highest in 11 years -survey
RIO DE JANEIRO, BRAZIL – The average indebtedness level of Brazilian families in 2021 was the highest in 11 years, according to the Survey of Consumer Indebtedness and Delinquency (Peic), released today (18) by the National Confederation of Trade of Goods, Services and Tourism (CNC).
According to the survey, last year set a record for the total number of indebted families, registering an average of 70.9% of Brazilian families, while December reached an all-time high with 76.3% of all families. According to the CNC, families resorted more to credit to sustain consumption.
In the evaluation per income bracket, the average indebtedness of families with up to 10 minimum wages per month increased 4.3%, reaching 72.1% of the total. In the higher income bracket, above 10 minimum wages, the indicator increased even more, 5.8%, and closed at 66%.
The president of the CNC, José Roberto Tadros, believes that the pent-up demand among families with incomes above 10 minimum wages, especially in the consumption of services, makes the debt increase even more, especially credit cards.
“The process of immunization of the population allowed the pandemic to become more flexible, reflecting the increased circulation of people in commercial areas throughout the year, which responded to the resumption of consumption, especially of services,” said Tadros, in a note.
Compared to 2020, of the five regions in the country, only the Midwest showed a drop in the index, 0.3%. The North was stable, and the Southeast stood out with a 5.9% increase, followed by the South (+5.5%.) and the Northeast (+4.5%).
However, considering the total number of indebted people, the South had the highest percentage, approaching 82%.
DELINQUENCY
In the opposite direction to the indebtedness indicators, in the last year, the default figures showed a drop. According to the survey, the average percentage of families with bills and/or debts in arrears decreased 0.3% in comparison to 2020, reaching 25.2%.
After starting 2021 at a higher level than at the end of the previous year, the monthly percentage of delinquency decreased until May, but started to show an upward trend since then, reaching 26.2% in December and staying above the annual average.
More: Brazil news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief