Fifty-two Percent of Brazilian Consumers Claim Inability to pay Debts, Survey Shows

RIO DE JANEIRO, BRAZIL – A Boa Vista survey shows that 52 percent of consumers in Brazil said they will not be able to pay their bills or will only be able to pay half their financial commitments.

According to the survey conducted with 600 Brazilians, 80 percent said they have already amended their household budget.

As for 56 percent of respondents, paying their bills on time will be feasible for a maximum of two months, while 12 percent said they can afford to do so for three to four months.
While 12 percent said they will be able to pay for their household expenses for more than four months, 20 percent were unable to answer.

Boa Vista also heard consumers to determine what type of debt they have. On average, 49 percent reported having some kind of installment purchase plan, such as a credit card, bill or store card, and a post-dated check.

Another 27 percent said they are in debt through financing or loans, such as vehicle and/or mobile financing or personal/payroll loans.

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Consumers said they are unsure about the future of the economy and their finances. According to the survey, 59 percent of respondents may need to take out loans to pay their bills during or after the novel coronavirus pandemic.

Another 41 percent say they will not need to take out loans at this time.

Of the 52 percent who said they will be able to pay only part or none of their bills in the coming months, 83 percent said they will need to take out loans.

Even among the 48 percent who say they will not need these resources because they believe they will be able to keep their bills up to date with their income, 34 percent say they will need extra credit at some point if the current situation persists, with closed trade, layoffs and a decrease in income.

The main loan option mentioned by those saying they will need it either during or after the pandemic was personal loans in banks (21 percent), followed by credit cards (14 percent) and payroll loans (12 percent).

Source: Estadão Conteúdo