The percentage of indebted families reached 66.6 percent in April this year. According to the Survey on Consumers’ Indebtedness and Insolvency (PEIC), released today (Apr. 14) by the National Confederation of Trade in Goods, Services, and Tourism (CNC), the threshold is a new record since the monitoring started in January 2010. In March this year, the rate had stood at 66.2 percent, and, in April 2019, at 62.7 percent.
This was the first survey conducted after the beginning of the coronavirus pandemic in the country. Data collection took place from March 20 to April 5 this year.
Most debts are incurred on credit card (77.6%), followed by payment slip booklets (17.5%) and car loans (10.2%).
According to CNC President José Roberto Tadros, the increase in indebtedness is brought about by an expansion in credit, to maintain families’ purchasing power during the new coronavirus pandemic. “The plunge in interest and inflation reduce, respectively, the cost of credit and pressure on income, stimulating indebtedness.”
The level of insolvency, which includes families with bills or debts overdue, held steady at 25.3 percent, as was the case in March. Compared to April last year, the value increased, as insolvency level was reported at 23.9 percent.
The percentage of families not in conditions to pay their debts went down from 10.2 percent in March to 9.9 percent in April. Still, the percentage is higher than April 2019 (9.5%).
