A May survey by the confederation indicated that 79.6% of those earning between 3 and 5 minimum wages cited debts to be paid
A survey by the CNC (National Confederation of Trade in Goods, Services and Tourism) showed that indebtedness and defaults increased among middle-class families in Brazil in May.
Among those earning between 3 and 5 minimum wages, 79.6% say they have debts to pay, compared to 78.7% in April. Already 27.7% mention overdue debts, an increase of 0.4 percentage points in comparison with the previous month (27.3%). The data are from Peic (Consumer Indebtedness and Default Survey), published by CNC on Tuesday (June 6, 2023). Here’s the full of the search (399 KB).
Debts include post-dated checks, credit cards, overdrafts, store payment cards, payroll loans, personal loans, and car and home payments.
In the general scenario, 78.3% of Brazilian families maintained debts (in arrears or not) in May of this year. The percentage is the same registered since February. Of these, 18% said they consider themselves “very indebted”highest rate since August 2022.
The survey points out that low-income families (up to 3 minimum wages), however, had a slight reduction in the percentage of indebtedness, going from 79% to 78.7%. Overdue debts in this segment of the population remained stable at 36.3%.
Regarding unavailability to pay debts, the range between 5 and 10 minimum wages had the greatest variation, from 7.9% to 8.5%.
“The increase in interest rates tends to have a greater influence on the accounts of the middle class, while the increase in policies aimed at social benefits is reflected in the lower income brackets. This explains, in a good part, the results of the May Peic”said CNC president José Roberto Tadros.
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