Overdue debts have literally kept up to 84% of Brazilians who are in default, shows the survey “X-Ray of Brazilians in a Default Situation”, carried out in a partnership between MFM Tecnologia and Instituto Locomotiva.
The situation is such that 82% of respondents with debt admitted that it has directly affected their happiness.
Overdue debts, according to the director of Research at the Locomotiva Institute, João Paulo Cunha, have even harmed the family relationships of defaulters. According to him, 81% of these people said that debts have been the reason for fights at home.
Overdue debts affect the appetite of 66% of the people surveyed.
MFM and Instituto Locomotiva interviewed 1,020 women and men over the age of 18 throughout Brazil between the 19th and 28th of September. The survey found that 30% of Brazilian households are in arrears.
When asked for debtors with overdue accounts what were the reasons that led them to default, most said it was job loss, lack of planning and loaning their name to third parties.
Also, according to Cunha, 18% stated that they defaulted because they got sick and had to use the money for treatment. “In this context, most of those in debt are and will use the Brazil Aid to pay off debt. That is why the aid is not affecting retail”, said the director of the Locomotiva Institute.
Still, according to the survey, 25% of defaulters said they will be able to pay off their overdue debts. What is another factor of concern, according to Cunha, is that 40% of respondents said they intend to take out a new loan to settle overdue bills.
But the main strategy, according to the responses, will involve cutting consumption, which presents itself as yet another challenge for trade.
“Another interesting aspect was account rotation. 60% have already stopped paying a bill to pay another late one. This was more frequent among classes D and E and means that not all people manage to be indebted with all accounts”, observed the director of Instituto Locomotiva.
Source: CNN Brasil
A journalist with over 7 years of experience in the news industry, currently working at World Stock Market as an author for the Entertainment section and also contributing to the Economics or finance section on a part-time basis. Has a passion for Entertainment and fashion topics, and has put in a lot of research and effort to provide accurate information to readers.
