Brazilian families are more cautious with indebtedness

The number of families in debt increased in may, reaching 62.7% of Brazilians, according to the survey of indebtedness and consumer Delinquencies (Peic) the National Commerce Confederation for goods, services and tourism (CNC) released yesterday. Despite the high, this number is lower than the 64.3% recorded in May last year. According to economist Marianne Hanson, Brazilians are more cautious at the time of hiring or renew loans and financing, due to the high cost of credit. "Higher Interest and more modest income gains lead to conditions less favourable for the indebtedness," said Marianne.
The default levels also showed a fall in May. The percentage of households with overdue debts had a slight fall in both the monthly comparison ( -0.1%) and yearly ( -0.7%). Also there was a reduction in the number of families that will not be able to pay their debts and therefore would remain in default. This index reached 6.8% in may 2014, against 6.9 percent in April 2014 and 7.5% in may 2013.
On the perception of families about their level of debt, only the proportion of those who declared themselves very indebted has increased between the months of April and may 2014, rising from 11.8% to 12.2% of total families. Compared to the previous year, there was a reduction in this indicator. Yet in comparison between may 2013 and may 2014, the portion who said he was more or less in debt went from 23.4% to 23.5%, and the number of those who perceive little debt rose from 28.4% to 27% of total debt.