Family debt breaks new record despite government renegotiation programs
According to the Central Bank, household bank debt reached 50.1% of income in 12 months, and debt service already consumes 29.0%.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM MONEY TIMES · 2 MIN
The bank debt of Brazilian families reached 50.1% of accumulated income over 12 months in August, the highest level in the Central Bank's historical series. According to Money Times, the data was released on Thursday (29) and shows that the increase in debt continued even after the Lula government launched two renegotiation programs with Treasury guarantees.
There is a second indicator that draws the attention of those who follow credit. The commitment of income to debt service reached 29.0% in August, also the highest level ever recorded in the series. In practice, an increasingly larger share of what families receive is reserved to pay financial obligations, which reduces the margin for other expenses.
The survey points to three main factors, according to Money Times: high interest rates, rapid growth in credit cards and the expansion of unsecured loans. The three add up and help explain why debt increases even in a scenario of high cost of money.
The increase occurs despite the measures adopted by the Executive. The two renegotiation programs, backed by Treasury guarantees, were designed to provide relief to those who are in arrears or have tight budgets. The fact that the indicator rose despite this suggests that specific initiatives are not enough to reverse the trend.
From the liberal perspective of this newspaper, the picture reinforces the thesis that renegotiations treat the symptoms, while the basic solution involves a sustainable drop in interest rates, something that depends on fiscal responsibility and an environment in which credit is cheap without depending on subsidies.
What changes for the investor
For those who invest and operate in the stock market, Nasdaq, interest rates and the dollar, the data is a sign that consumer credit remains under pressure. Weaker consumption could affect companies linked to retail, cards and personal credit, while the trajectory of interest rates continues to influence the valuation of variable income assets and the attractiveness of fixed income. This article does not recommend the purchase or sale of any asset and does not project prices; It is up to each investor to evaluate their profile and the scenario before deciding.
Automatically translated from Portuguese.
