The National Survey of Consumer Debt and Default (Peic), calculated monthly by the National Confederation of Commerce of Goods, Services and Tourism (CNC), showed that the high interest rate in the country is making debt more expensive and holding families in a situation of default.
The survey shows that, in October, 29.3% of consumers had outstanding debts of 30 days or more, compared to 29.0% in September. In October 2023, 29.7% of consumers had outstanding debts of more than one month.
The percentage of families with debts in arrears for more than 90 days reached 50.4% of the total indebtedness in October this year, the highest since February 2018, showing that arrears are remaining for longer. “This is because rising interest rates make debt more expensive,” says the research.
According to the survey, the rise in interest rates is causing families to need longer periods to pay them off. “The more challenging income commitment percentage helps to explain the increase in the percentage of families that will not be able to pay late bills, showing that longer debt terms and lower indebtedness are not enough to compensate for the increase in the level interest rates”, says the research.
Low income
According to the survey, default among lower-income families (up to three minimum wages) reached 37.7% in October, “reflecting the impact of high interest rates and more restrictive credit conditions on the budgets of the most vulnerable”. This increase occurred despite the general reduction in debt, which fell to 76.9%, a level similar to that recorded in October last year, indicating greater caution on the part of families when using credit.
“Dependence on credit in a scenario of high interest rates makes paying off debts an even greater challenge for the poorest families,” said the president of the CNC-Sesc-Senac System, José Roberto Tadros. “We believe that, with measures aimed at reducing public spending, it is possible to create space for a possible drop in interest rates, which would bring significant relief to consumers and the economy as a whole,” he stated.
The National Survey of Consumer Debt and Default (Peic) has been calculated monthly by the CNC since January 2010. The data is collected in all state capitals and the Federal District, with approximately 18 thousand consumers.
