Brazilian families end 2021 with record debt
Households resorted more to credit to sustain consumption
Published in 19/01/2022 - 09:20 By Ana Cristina Campos – Repórter da Agência Brasil - Rio de Janeiro
The average indebtedness level of Brazilian families in 2021 was the highest in 11 years, according to a survey released on Tuesday (Jan. 18) by the National Confederation of Trade of Goods, Services and Tourism (CNC).
According to the survey, last year set a record in terms of indebted families, registering an average of 70.9% of Brazilian families, while December reached the historical maximum level of 76.3% of all families. According to CNC, families have resorted more to credit to sustain consumption.
In the evaluation by income bracket, the average indebtedness of families with up to 10 minimum wages ($ 1,992.28 dollars) per month increased by 4.3 percentage points, reaching 72.1% of the total families. In the upper income bracket, above 10 minimum wages, the indicator increased even more, 5.8 percentage points, and closed at 66%.
The head of CNC José Roberto Tadros assesses that, among families with monthly incomes above 10 minimum wages, the pent-up demand, especially for the consumption of services, has made indebtedness increase even more expressively, especially on the credit card.
“The process of immunization of the population made it possible to ease the pandemic, and to increase the circulation of people in commercial areas throughout the year, which has led to the resumption of consumption, mainly of services”, said Tadros in a statement.
Translation: Mário Nunes - Edition: Valéria Aguiar/Nira Foster