Family Indebtedness breaks new record in August and reaches almost 80% of Brazilian families; check out

São José do Rio Preto, September 8, 2022, by Sérgio Carrieri – O Family Indebtedness reached a new record in August of that year with an index of 79%. According to data from the survey carried out by the National Confederation of Trade in Goods, Services and Tourism (CNC). Also according to the survey, it is the worst index ever recorded since 2010, when the historical series began.

Continues after advertising

In this way, we will bring more details of this serious social problem that intensified after the Covid-19. In addition, of this total indebtedness, about 30% of these families stated that they cannot pay at this time. In the same period last year, this rate was approximately 25%.

Continues after advertising

Family indebtedness hits a new record in August and reaches almost 80% of Brazilian families;  check it out - Freepik
Family indebtedness hits a new record in August and reaches almost 80% of Brazilian families; check it out – Freepik

CNC indicates growth in Family Indebtedness

Also according to the CNC survey, around 19.5% of families sought cheaper forms of credit, such as cards from popular stores and booklets. The market expected for the month according to the July movement was 0.5%. That is, well above the forecast of economic analysts for the period.

Despite this, the Brazilian economy has been gradually showing signs of recovery, but these are still insufficient for the most destitute population. Especially families from the lower classes, dependent on social assistance from the Federal Government. Auxílio Brasil, for example, relieved the most indebted only for a brief moment, according to yesterday’s article in Portal Young pan.

Family indebtedness hits a new record in August and reaches almost 80% of Brazilian families;  check it out - Jovem Pan Reproduction
Family indebtedness hits a new record in August and reaches almost 80% of Brazilian families; check it out – Jovem Pan Reproduction

Main causes of Family Indebtedness

Also according to the CNC survey, it was pointed out that most of the family budget is being applied to the purchase of food, while the food sector is one of those most impacted by global inflationary pressure. Precisely for this reason, the poorest are the ones who suffer the worst consequences of an economic crisis like this.

After all, in the last twelve months alone, supermarket purchases increased by more than 17% according to IPCA data. In an attempt to find alternatives for lower interest rates, many resort to loans from large retailers. However, Procon alerts consumers to tying sales and hidden interest in these credit offers.

Research shows that defaults grew in 2022

The CNC survey also pointed out that about 22% of Brazilian families already have half of their budget committed to debt, mainly to pay off loans with banks or financial stores. Thus, this is the highest level recorded since December 2017, a period troubled by political and economic crises.

Finally, the credit card accounted for the highest growth in Family Indebtedness in the period, with around 90%. And it also contains one of the most abusive forms of charging interest on credit in the country.

Anyway, this is another great challenge for Brazilians who are still recovering from the effects of the pandemic, such as unemployment and high inflation. Want to know more about the world of economics? Access the Superpix Diary!

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

Check Also

4 reasons to invest in fixed income

Thinking about investing but don’t know where to start? Check out 4 reasons to invest …