Brazil's economic crisis has led to an unprecedented number of households being unable to repey their debts, it was reported Thursday.
According to the National Confederation of Trade in Goods, Services and Tourism (CNC), over 12 million families were in the red in October, the highest number in 11 years and a new record since the index was created in 2000.
The latest CNC report showed 74.6% of households admitted to being in debt through credit cards, post-dated checks, personal loans or home or vehicle loans.
The number of people in this situation has been on the rise due to the growing inflation, which has already accumulated 10.25% in the last twelve months.
Borrowers increased by 8.1%, compared to October 2020. In September 2021, the number of indebted Brazilians rose 0.6%, due to the increase in the cost of money. The Selic basic interest rate was raised to 7.75% per year in October, its highest level in four years.
Of the total number of families in debt, 25.6% are behind in payments and more than 10% accepted that they have no conditions to pay the debt.
In this scenario more than 100 companies have engaged in the Feirão Limpa Nome program until December 5 for 15 million defaulters in the state of São Paulo to renegotiate debts. Creditors are offering up to a 99% discount on fines and interests.
(Source: EFE, G1)