By Xiu Ying

RIO DE JANEIRO, BRAZIL – Family indebtedness registered the fifth consecutive hike in May, according to a survey released by the National Confederation of Trade in Goods, Services, and Tourism (CNC) on Tuesday, June 11th.

Last month, the percentage of indebted Brazilian families reached 63.4 percent. This is the highest rate since September 2015 (63.5 percent).
Last month, the percentage of indebted Brazilian families reached 63.4 percent. This is the highest rate since September 2015 (63.5 percent). (Image internet reproduction)

Last month, the percentage of indebted Brazilian families reached 63.4 percent, an increase of 0.7 percentage points (p.p.) concerning April (62.7 percent). This is the highest rate since September 2015 (63.5 percent).

Compared to May of last year, growth was 4.4 percentage points.

The indicator covers debts with a predated check, credit card, special check, store card, personal loan, and auto and insurance installment.

The proportion of families with accounts or debts in arrears, i.e., defaulters, rose from 23.9 percent in April to 24.1 percent in May, the highest since May 2018.

The number of families that declared to be unfit to pay their debts in arrears remained stable at 9.5 percent compared to the previous month, and fell 0.4 p.p. compared to May 2018 (9.9 percent).

Among indebted families, the average share of income committed to debt was stable in May 2019, standing at 29.3 percent. Among households with overdue bills or debts, the average time in arrears was 62.9 days in May 2019 – lower than the 64.4 days in May 2018.

The average time of engagement with debt among indebted families was seven months, with 25.3 percent of those committed to debt for up to three months and 31.3 percent for more than a year.

The credit card was once more appointed as the main source of debt by 78.6 percent of indebted families, followed by installments (15.8 percent) and auto financing (10.5 percent).

The National Consumer Debt and Default Survey (Peic Nacional) has been conducted monthly by CNC since January 2010. Data are collected in all state capitals and the Federal District, involving approximately 18,000 consumers.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

sixteen + 4 =