Consumer defaults remained high in November. Among families, 29.4% said they had outstanding debts. The percentage is the highest since October last year. The total number of consumers who revealed that they were unable to pay off their debts rose to 12.9%. In October, it was 12.6% and, in November 2023, 12.5%.
The data comes from the November Consumer Debt and Default Survey (Peic), prepared monthly by the National Confederation of Commerce in Goods, Services and Tourism (CNC). The Peic released this Thursday (5) indicated changes in the types of credit and the financial behavior of families.
According to the survey, consumer debt increased in November, reaching 77% of the total, compared to the 76.6% recorded in the same month of 2023. The increase is the result of the greater use of credit for end-of-year purchases, in addition to indicating more cautious budget management, the researchers say. The percentage of consumers who consider themselves very indebted fell to 15.2%, the lowest level since November 2021.
The president of the CNC-Sesc-Senac System, José Roberto Tadros, highlighted the importance of longer periods in family financial planning. For Tadros, consumers are looking for balance in their debts. “The seasonal increase in credit is expected at this time of year, but the more balanced profile of debts indicates more conscious use, with less impact on monthly income,” he said, in a text released by the CNC.
Stability
CNC projections point to the continued evolution of debt in December, as a result of Christmas shopping. However, default rates should remain stable, due to the behavior of families in the face of the high interest rate scenario.
In the view of the CNC’s acting chief economist, Fábio Bentes, the recovery in consumption depends on responsible credit management. “Despite a slight increase in debt, the impact on monthly income has decreased, reflecting the efforts of families to keep their accounts balanced even in the face of economic adversity,” he stated.
Lower income
The research also showed that the debt of lower-income families (up to 3 minimum wages) increased to 81.1%, the highest rate among all groups. “These families also recorded the highest percentage of defaults, with 37.5% reporting outstanding debts and 18.5% stating they were unable to pay off their debts,” added the CNC.
Families with income above 10 minimum wages reduced their debt to 66.7%. Among those interviewed, 14.6% reported outstanding debts and only 5% reported being unable to make payments. “This behavior reflects greater financial planning capacity and less dependence on credit”, assessed the researchers.
The research also shows that less income commitment and longer terms contribute to stability. In November, the average commitment of income to debt reached 29.8%, which represented “a slight drop compared to October”. Another decline observed was in the percentage of consumers with more than half of their income compromised, which fell to 20.3%, the lowest rate since August 2024.
Around 35.9% of indebted families were able to move forward with longer terms to pay off debts. The percentage is the highest level since December 2021. “This change has helped to reduce the length of time accounts are late, with the percentage of those in default for more than 90 days falling to 49.6%”, analyzed Peic.
Card
Although the card remains the main type of debt for 83.8% of indebted families, this type of credit fell 3.9 percentage points compared to November 2023. In contrast, personal credit continued to stand out and recorded an increase in 2.5 percentage points in the annual comparison. “Despite a slight monthly reduction (from 12% in October to 11.7% in November), it is favored by the lowest interest rates among the modalities. Carnês, although still relevant, lost share compared to the previous year”, concluded the CNC.
