Default among Brazil families up for 8th time in row

Default—defined by bills or debts in arrears—reached 28.7 percent of Brazilian families in May. This is the eighth consecutive increase in the indicator, on the rise since October 2021. The figures can be found in a survey released today (Jun 7) by the country’s National Trade Confederation (CNC).

In April, the default rate had been 28.6 percent. In May 2021, the percentage stood at 24.3 percent.

The proportion of indebted families—those with debts, overdue or not—was 77.4 percent in May, down from 77.7 percent in April, breaking a three-month streak on the increase. Despite the decline, the value is still higher than May 2021 (68%).

The number of families who will not be able to pay their overdue bills also shrank, from 10.9 percent in April to 10.8 percent in May. In May 2021, this indicator was 10.5 percent.

The most common type of debt is still the credit card, which lies behind the indebtedness of 88.5 percent of these families.

According to the study, the average commitment of the household income with debts reached 30.4 percent in May, the highest since August last year (also 30.4 percent). Of the total indebted, 22.2 percent needed over 50 percent of their income to pay debts with banks and financial institutions, the highest level since December 2017.

The average delay in debt clearance among those with bills overdue reached 61.7 days—down from 62.1 days in April, but up from 61 days in May 2021.