Indebted families reach 77.3% in June

The proportion of families with outstanding debt stood at 77.3 percent in June, which represents a drop of 0.1 percentage point in relation to May. There was a growth of 7.6 percentage points compared to June 2021. The figures can be found in a survey released on Thursday (Jul. 7) by the country´s National Confederation of Trade in Goods, Services, and Tourism (CNC).

According to CNC, this is the second consecutive decline in indebtedness of families, after the record increase registered in April when the indicator stood at 77.7 percent.

Credit cards come up as the largest share of indebtedness reaching 86.6 percent of the families reporting this type of debt, followed by installment plans with payment booklets (18.3%), and car loans (10.8%). In June 2021, these figures stood respectively at 81.8 percent, 17.5 percent, and 11.9 percent.

For CNC president José Roberto Tadros, the drop in indebtedness reflects the improvement in the job market and temporary income support measures, such as the increase in the value of Brasil Aid – a social program for low-income families.

Default

The survey shows that default among families with overdue bills has dropped 0.2 percentage points to 28.5 percent. This is the first drop since September 2021. The number of families who will not be able to pay their overdue bills also shrank to 10.6 percent.

The improvement in the labor market is not reflected in the income of the families, as workers with lower levels of education are being absorbed and the average income is flattened by high inflation, according to Izis Ferreira who was responsible for the survey.

“Besides that, the recent growth of informal jobs is another factor that increases the volatility of labor income and hinders the management of personal finances,” she explained.