70 million Brazilians have pending issues at Serasa

More than 70 million Brazilians are in default, according to figures from Serasa Experian. It is the highest number since the beginning of the historical series, in 2016. There are more than 252.1 million unpaid debts, which correspond to R$ 323.3 billion, which is approximately equivalent to the GDP of Santa Catarina, the sixth largest among the units of the federation.

The main factor responsible for the growth in defaults, according to Luiz Rabi, chief economist at Serasa Experian, was the increase in inflation, which, between September 2021 and July 2022, ran above 10% per year, according to the Brazilian Institute of Geography and Statistics (IBGE). “The rise in prices has wreaked havoc on consumers’ purchasing power,” he says.

Over the past five years, debts have weighed more heavily on Brazilians’ pockets. They were, on average, 27% more expensive, reaching R$ 4,621.30. “It became more difficult to get out of default because wages have not kept pace with inflation in recent years”, says Rabi.

In at least four states, the percentage of defaulters exceeds half of the adult population. This is the case of Amazonas, Rio de Janeiro, Amapá and the Federal District. The group brings together FUs whose per capita income is stagnant.

Negatives are gaining momentum in the financial sector. They accounted for 36.6% of the total in January 2021 and, two years later, already accounted for 45.7% of the total. It is a number also detected by the Central Bank. The weight of default increased, in the period, from 2.15% of the total credit portfolio to 3.19%.