Percentage of Indebted Brazilian Families Rises Further, Reaching 64 Percent
RIO DE JANEIRO, BRAZIL – Family indebtedness registered its sixth consecutive increase in June, according to a monthly survey released on Tuesday, July 9th, by the National Confederation of Trade in Goods, Services and Tourism (CNC).
In June, the percentage of indebted Brazilian families reached 64 percent, compared to 63.4 percent in May. This is the highest rate since July 2013 (65.2 percent).
The percentage of households with overdue bills or debts, however, decreased in June 2019, compared to the immediately preceding month, dropping from 24.1 percent to 23.6 percent of the total — the first decrease of the year.
The number of families reporting themselves as unable to pay their overdue debts, and remaining in arrears, was stable at 9.5 percent compared to the previous month.
The indicator includes debts with predated cheques, credit cards, special cheques, store cards, personal loans, car loans, and insurance.
Income Commitment
As a result, the monthly family budget committed to debt increased from 29.3 percent to 29.5 percent between May and June, the highest rate since September of last year (29.6 percent).
For the CNC, the growth in the number of indebted families is not expected to last, because families have already reached the limit of their indebtedness in June.
The proportion of families that reported substantial debt rose from 12.9 percent in May to thirteen percent in June.
Among households with overdue bills or debts, the average time of arrears was 63.4 days in June 2019 – down from 63.6 days in June last year.
The credit card was once again named as the primary source of debt by 78.8 percent of indebted families, followed by store cards (15.8 percent) and car loans (10.5 percent).
The National Consumer Debt and Default Survey (Peic Nacional) has been conducted monthly by CNC since January 2010. The data is collected in all state capitals and the Federal District, involving approximately 18,000 consumers.
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