Inflation and unemployment add to country's delinquency levels
The number of people with overdue bills increased 0.6% in July from June, according to the Serasa Experian Index on Consumer Delinquency.
The number of people with overdue bills increased 0.6% in July from June, according to the Serasa Experian Index on Consumer Delinquency. Compared to 2014, the indicator was up 19.4%. The year-to-date saw an increase of 16.8% against the same period last year.
Economists at Serasa Experian believe surging unemployment, the inflation and high interest rates have been made it difficult for consumers to settle outstanding debts.
Non-bank delinquency (credit cards, finance companies, stores, as well as service providers such as telephone, electricity and water utilities) is seen as responsible for the surge, with a 3.5% expansion and a contribution of 1.6 percentage points in the monthly rate. Bank debts, however, were down 2.2%, and lowered the rate by one percentage point.
The average value of non-bank debts rose 10% form January to July this year from its 2014 counterpart. Bounced checks and bank delinquency also jumped, by 10.4% and 0.9% respectively. Protested bills, in turn, registered a fall of 1.9%.
Translated by Fabrício Ferreira
Fonte: Inflation and unemployment add to country's delinquency levels
