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Debts

New habits, old problems Pressured by inflation and high consumption, Brazil is indebted more

14/05/2013

This article was translated by an automatic translation system, and was therefore not reviewed by people.

 

 



RIO - On the one hand, inflation accelerated and pushed the worker's income, which, in turn, was already highly leveraged. The other, the government took action to hold the high cost of living and announced in April the first of an expected series of increases in the benchmark interest rate, another factor pushing the household budget. And the situation was no longer comfortable. Research done by the Brazilian Federation of Banks (Febraban), in partnership with the Data Popular, showed that 84% of users of financial education portal of the institution have stayed or are delinquent. Young people and women are more susceptible to excesses in consumption, according to the federation.

- It is a riddle. The tendency of government is to further increase the Selic, as a way to preemptively combat inflation. And, for the consumer, it is very expensive. In 30 years, it is very expensive - defends Reinaldo Domingos, author of "Get Rid of Debt" and president of the Brazilian Association of Educators Financial.

The indicator SERASA Default Consumer had recorded advancement debt in March (3.6% compared to February), with the first quarter of 2013 reaching a high of 10.5%. The monthly increase was the first of the year, driven, among other factors, the general rise in prices. The increase in the Selic rate to 7.5% a year raises the cost of debt with floating rates, such as overdraft dearer. The consumer is then, with basically two choices: resume consumption patterns before or do more debts.

- People take a while to notice that money is not working. And the trend is to go into debt to maintain consumption pattern that is more expensive due to inflation. This is the gateway into debt, and be on the verge of default - says finance professor Ibmec-RJ Gilberto Braga, in the second chapter of the series of reports "New habits, old problems", the site began GLOBE Monday to show how Brazilians are reacting to high inflation and interest rates.

The research shows that consumers febraban said they realize that their financial situation has improved, because today have access to both goods of higher quality and more expensive (such as flat screen TVs, cars and mobile phones equipped with the latest technology) and because they entered new categories of consumption (with the possibility of access to restaurants, health plans and college).

"You get used to the good," was one of the phrases uttered by one of the respondents and recorded by the researchers during the study. But we detected a widespread perception that "the more you earn, the more you spend", which increases in the current scenario, the risk of debt and default.

The risk is even greater for women heads of families and young people aged 18 to 25 years, the study said. According to data collected by the Data Popular, many of the young people interviewed had parcelaram purchases they could not afford, burst out of credit card debt have made the overdraft or loan to pay off debts. More susceptible to social pressures and the appeal of the society, on the one hand, they are more spurious spending, says Renato Meirelles, president of Data Popular. On the other hand, appear to be better informed and more financially knowledgeable of internet tools to control their spending.

For Meirelles, the most likely choice is that the debt will continue to grow, but at lower levels. For him, the consumer has matured, know best how to calculate and pay interest "is no longer lost in paradise consumption":

- The advance of consumption not to, because half of Brazilian households has no refrigerator, for example. Products are very basic, people do not want to wait years to buy. What leads to delinquency are the little expenses; major are more planned. Credits estate and automotive, along with payroll, leading the credit terms and have even lower interest rates thanks to the low default - reminds Meirelles.

The research febraban / Date Popular heard 2,781 people.

SERIES "NEW HABITS, OLD PROBLEMS":
YESTERDAY: With rise in inflation, Brazilian already buys up to 11% less
TOMORROW: Looking for hedge funds grows in search for higher yield

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Source: The Globe - Online

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