For the 2nd consecutive month, the Peic (Consumer Debt and Default Survey), carried out monthly by CNC (National Confederation of Commerce of Goods, Services and Tourism), records a drop in Brazilian family debt.
The percentage of households reporting having outstanding debts fell to 78% in August, down from 78.5% in July. This is still higher than the 77.4% recorded in August last year. 
According to the CNC, the result reflects a growing caution among families regarding the use of credit. Despite this reduction in overall debt, the number of families that consider themselves “very indebted” increased to 16.8%.
For the president of the CNC-Sesc-Senac System, José Roberto Tadros, the recent behavior of debt is directly linked to the macroeconomic scenario.
“The GDP result [Produto Interno Bruto]qThe 2nd quarter saw growth of 1.4%, exceeding expectations, but also revealing a still challenging economic environment. Debt relief is positive, but we must consider that high interest rates and a slow economic recovery still create uncertainty for Brazilian families. A possible decline in consumption could affect the resumption of growth.”Tadros said.
DEFAULT
Regarding default, the percentage of families with overdue debts remained stable at 28.8% for the 3rd consecutive month, remaining slightly below that recorded in August 2023.
The percentage of families that will not be able to pay their overdue debts rose to 12.1%, an indication that, even with the stabilization in the number of overdue bills, financial difficulties remain.
In addition, the percentage of debts overdue for more than 90 days increased to 48.6%, the highest since March 2020.
CNC’s chief economist, Felipe Tavares, notes that, although debt is falling, the commitment of family income to paying debts is still high.
“The average percentage of income commitment was 29.6% in August, demonstrating that families are seeking to keep their finances under control, but need to extend terms and deal with high interest rates, which complicates the situation.”, says Tavares.
The percentage of families with more than half of their income committed to debt reached 19.9%. This is the highest since June of this year.
CNC projections indicate that debt should rise again in the last quarter of the year, accompanying a gradual increase in default. It could reach 29.5% by December.
In terms of credit, credit cards continue to lead with an 85.7% share among debtors, despite a 0.4 pp (percentage points) drop compared to the previous month.
Personal credit stood out with an increase of 0.5 pp (percentage points) compared to July and 1.8 percentage points in the annual comparison, reflecting the recent reductions in interest rates for this modality.
Rio Grande do Sul, affected by floods in May, has been experiencing a continuous increase in debt. It reached 92.9% in August, the highest percentage since October 2023.
As a result, the state recorded 39.1% of families in debt with overdue bills. This is the highest rate since December 2023, and 3.7% are unable to pay them. The highest rate since August 2021.
With information from Brazil Agency.
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