The number of families unable to pay overdue debts is growing.
With high interest rates and record unemployment, the number of Brazilian families unable to pay and renegotiate debts has increased. The number of families with overdue bills who say they cannot get back on their feet grew by 25% between 2015 and 2016, according to a study by the National Confederation of Commerce of Goods, Services and Tourism (CNC); approximately 1,389 million families are in this situation, out of a universe of 3,6 million defaulters, considering the average of last year as determined by the CNC in its consumer debt and default survey.
247 - With high interest rates and record unemployment, the number of Brazilian families unable to pay and renegotiate debts has increased. The number of families with overdue bills who say they are unable to get back on their feet grew by 25% between 2015 and 2016, according to a study by the National Confederation of Commerce of Goods, Services and Tourism (CNC). Approximately 1,389 million families are in this situation, out of a total of 3,6 million defaulters, based on the average for last year as determined by the CNC in its consumer debt and default survey.
The information is from report from Folha de S.Paulo.
This means two things: that families who remained indebted are having more difficulty paying their bills on time, and those who are behind on their bills are having difficulty renegotiating, explains CNC economist Marianne Hanson.
"The renegotiation terms are not favorable for families' finances. If the main provider is unemployed, they won't be able to renegotiate. And another point is that the installments are very high," Hanson states.
Banks have increased the interest rates they charge consumers, reflecting fears of defaults during a period of high unemployment.