The share of defaulters, those who have overdue bills or debts, reached 28.7% of Brazilian families in May. It is the eighth consecutive increase of the indicator, which has been growing since October 2021. The data are from the Consumer Debt and Default Survey (CNC) and were released today (7).
In April, the default rate was 28.6%. In May 2021, the percentage was 24.3%. The share recorded in May this year (28.7%) is the second highest rate in the survey, which began in 2010, only behind that observed in January of that year (29.1%).
The percentage of indebted families, that is, those with debts (in arrears or not), was 77.4% in May, down from 77.7% in April, interrupting three months of highs. Even with the drop, the rate is still higher than in May 2021 (68%).
Families unable to pay their overdue bills also fell, from 10.9% in April to 10.8% in May. In May 2021, the rate was 10.5%.
The most common type of debt remains the credit card, responsible for indebtedness for 88.5% of indebted households.
According to CNC, in May, the average commitment of family income to debt reached 30.4%, the highest percentage since August last year (also 30.4%). Of the total indebtedness, 22.2% needed more than 50% of their income to pay debts with banks and finance companies, the highest proportion since December 2017.
The average time to pay debts, among those with overdue accounts, reached 61.7 days, down from 62.1 days in April, but up from 61 days in May 2021.
