Indebtedness among Brazilian families fell in August for the second month running, but the percentage of people with debts overdue and those saying they will not be able to pay off their arrears was on the rise.
The increase breaks a four-month streak of stability in the indicator. Despite June’s higher indebtedness—a month before predictions—the average slice of income committed to debts was 29.6%, the lowest since September 2020.
The elderly have it harder than other age groups, and women are more affected than men. Inflation and high interest rates are said to have driven the increase.
The debts of 3.5 mi people stem from loans to be deducted directly from monthly welfare payments. The initiative will be jointly designed by multiple ministries.
Those who consider themselves highly indebted climbed from 14.8% in Nov. 2021 to 17.5% in Nov. this year. The income commitment with debts averaged 30.4 percent.