Brazil reports 57 million people in debt
Bank debts, including credit card, loans, and insurance, surged 10.32%. Bank debt ranks first (48.17%), followed debt in trade (20.3%). 
Over 2.4 million consumers had their names added to the delinquency list from January to September this year, according to data from Brazil's Credit Protection Service (SPC Brasil), released today (Oct. 9). Late in September, Brazilians in debt amounted to 57 million—38.9% of the country's adult population (18 to 94 years old).
Compared with August this year, the rate is down 0.59%. Against September 2014, the figure hiked by 5.45%.
According to SPC Brasil Chief Economist Marcela Kawauti, delinquency often drops from August to September, as more money circulates in the economy due to Christmas bonus payments to Social Security beneficiaries. Also scheduled for this month are debt renegotiation periods, but Kawauti notes delinquency rates get back on the rise in October and November, and down again in December, when the 13th salary benefit is paid.
Outstanding bills under utility services, such as water and electricity, saw the most significant increases: 12.55% in September year-on-year. Bank debts, including credit card, loans, and insurance, surged 10.32%. Bank debt ranks first (48.17%), followed debt in trade (20.3%).
The economist described the problem as appalling, as it can be found across every sector in the economy. The future outlook is also bleak, she says, with less hiring in trade late in the year, higher unemployment rates, lower revenues, and a fall in insolvency less significant than expected, also late this year.
Nonetheless, Kawauti argues, delinquency has not gotten out of control, because banks have been lending less money. “What curbs delinquency is the lower credit base.” She believes the economy could start putting on a better performance in the second half of 2016. She adds, however, that the government should overcome the political crisis so the situation can improve.
Translated by Fabrício Ferreira
Fonte: Brazil reports 57 million people in debt
