Brazilian household debt falls in December.
The reduction in indebtedness is recorded at the end of the year, a time when the indicator typically increases seasonally.
247 - In December 2024, Brazilian household debt fell to 76,7%, a decrease of 0,9 percentage points compared to November, when the index stood at 77,6%. The data was released by the National Confederation of Commerce (CNC), which highlighted the decrease in debt during the end-of-year period, traditionally characterized by increased credit due to Christmas celebrations and shopping. This information comes from the newspaper... The Globe.
According to the CNC (National Confederation of Commerce), the reduction in indebtedness may indicate a scenario of greater credit restriction, which would make it more difficult for families to access new debt. The study also reveals that, although the level of indebtedness in relation to Gross Domestic Product (GDP) remains below high levels, around 30%, it is still much lower than that recorded in the United States, where debts represent 72% of GDP.
However, the good news regarding the decrease in indebtedness is overshadowed by a growing concern: default. The survey indicates that 29,3% of families had overdue debts at the end of 2024, an increase of 0,5 percentage points compared to the same period in 2023, when this rate was 28,8%. The scenario is even more alarming for families struggling to pay off their debts, with a significant increase to 13%, the highest level recorded since the beginning of the historical series.
José Roberto Tadros, president of the CNC-Sesc-Senac System, comments on the reality of Brazilian families: "Default is a reflection of the disproportionate impact of these factors on low-income families, who face high interest rates and limited income to absorb rising prices. It is essential to promote a stable economic environment and policies that expand consumption capacity." The situation is especially serious for families with lower purchasing power. According to the research, 80,5% of families with incomes of up to three minimum wages were in debt in 2024. This group is the most dependent on credit to maintain their consumption patterns, and about 20,6% of them allocate more than 50% of their income to debt repayment, a number that remained practically unchanged compared to the previous year.
Felipe Tavares, chief economist at CNC, analyzes the economic situation: "Although indebtedness has become more sustainable in terms of committed income and term, the rise in interest rates and the increased cost of credit have made financial management more difficult for families. It is necessary to reinforce financial education and implement well-structured debt renegotiation policies."
