Number of negative Brazilians reaches record 62 million in September

The number of negative Brazilians hit a record in September, according to a survey on the level of indebtedness of the population carried out by the National Confederation of Shopkeepers (CNDL) and the Credit Protection Service (SPC Brasil) released this Thursday (20) .

The report shows that 4 out of 10 adult Brazilians (39.71%) were negative last month, which corresponds to approximately 64.25 million people, a record in the historical series started in 2014.

In a scenario of high interest rates and modest economic growth, the volume of consumers with overdue bills grew 11.17% in relation to the same period of the previous year. In comparison with August, there was an increase of 0.93% in the number of debtors.

The average debt accumulated by Brazilians with a negative name, in turn, amounted to around R$3,688.96 in September.

According to the survey, the banking sector, with 61.18% of the total, concentrates most of the outstanding debts of consumers in the country. Debts with banks grew 37.94% in September, compared to the same period last year.

Commerce appears next, accounting for 12.86% of debts, although it has registered a slight decrease of 0.28% compared to September 2021. Then comes the water and electricity sector, with 10.51% of total debt (an increase of 11.86% year-on-year), and communication, with 8.24% (a fall of 11.57% on an annual basis).

The survey also points out that about 34.14% of the indebted population had debts that totaled up to R$500. Another 20.48% had debts between R$1,000.01 and R$2,500.00 until last month, while 18.42% owed amounts from R$2,500.01 to R$7,500.00.

“Despite the improvement in some economic indicators, many Brazilians are still having difficulty closing the accounts at the end of the month. Part of the problem can be explained by the population’s income, which remains low. Unemployment has decreased, but income is not enough to reverse the losses of the last quarters”, said the president of the CNDL, José César da Costa, in a note.

He also said that, despite the drop in inflation in recent months, the price of food remains high and occupies a large part of the budget of families, especially those with lower incomes.

Regarding the time in which debts are in arrears, the most significant increase was from the range of 91 days to one year, in which there was a growth of 35.16% compared to September 2021, accounting for 21.78% of the total outstanding accounts.

Most debts are overdue between 1 and 3 years, with 32.58% of the total, with the term having registered a growth of 2.11% on an annual basis.

In terms of age group, the survey shows that those between 30 and 39 years old are the most indebted, with a percentage of 23.99% of the total, which represents about 15 million people registered in debtor registers.

Regarding gender, default is well distributed, with 50.90% women and 49.10% men.

“Despite the smaller number of unemployed, many Brazilians still haven’t managed to get back into the job market and those who managed to get a job are still trying to organize themselves financially”, said the president of SPC Brasil, Roque Pellizzaro Junior.

According to data from the SPC Brazil, the consumer takes, on average, ten months to get out of the defaulting situation. “Concentrating all debts in one place helps to have more control, better understand the size of the debt and make a plan”, said Pellizzaro Junior.

CNDL finance specialist Merula Borges predicts that the injection of resources into the economy with the 13th salary, the hiring of temporary labor for the end of the year and the green flag in energy prices in December can help to alleviate the scenario of default. “But it is important for the consumer to prioritize the payment of debts and not fall into the temptations of end-of-year purchases.”