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Brazil faces rising household debt with 83.9 million citizens indebted
Brazil is facing a significant rise in household debt, with 83.9 million citizens currently indebted. According to recent data, 54.15 million of these individuals are in arrears with the financial system, and 8.92 million were specifically in default with financial institutions in July.
Research from the National Confederation of Trade in Goods, Services and Tourism (CNC) indicates that 82% of Brazilian households had debt due in July. Credit cards are the most prevalent source of debt, cited by 85.3% of indebted families, followed by personal credit at 13%.
The landscape of debt is shifting due to increased financial inclusion. The rise of Pix and the popularity of fintechs have expanded credit access, but also contributed to a surge in multi-platform indebtedness. The number of consumers with debts in both traditional banks and fintechs has grown by 355.1% since December 2019. On average, families have 29.5% of their income committed to debt for a period of 7.2 months.
Entities
Brazil · Central Bank of Brazil · Confederação Nacional do Comércio de Bens, Serviços e Turismo
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] 83.9 million Brazilians have debts. dialogosdosul.operamundi.uol.com.br
- [○ 1 SOURCE] 54.15 million Brazilians are in arrears with the financial system. dialogosdosul.operamundi.uol.com.br
- [○ 1 SOURCE] Consumers with debts in both banks and fintechs increased by 355.1% compared to December 2019. dialogosdosul.operamundi.uol.com.br
- [○ 1 SOURCE] 85.3% of indebted families cited credit cards as a source of debt. exame.com
- [○ 1 SOURCE] 82% of Brazilian households had some debt due in July, according to the Peic study. exame.com
- [○ 1 SOURCE] 8.92 million Brazilians were in default with financial institutions in July. dialogosdosul.operamundi.uol.com.br
- [○ 1 SOURCE] Families had an average of 29.5% of their income committed to debt for 7.2 months. exame.com