São Paulo – Brazilian consumer insolvency was up 17.2% year-on-year in August, as per a report released by consulting firm Serasa Experian this Tuesday (9th). In August from July, overdue debts declined by 0.2%, but according to Serasa Experian August had fewer working days than July, which influences the insolvency calculations.
According to the survey, the surge in insolvency in August was the most dramatic since June 2012 and reflects Brazil’s current economic scenario. According to a press release disclosed by Serasa Experian, the higher default rate “reflects a more adverse situation this year as regards the consumers’ debts payment capability: higher inflation rate, high interest and a weakening of the job market."
In August from July, non-banking debt (retail, credit cards and financing companies) was up 2.9%, debt to banks was down 0.8%, debt claims were down 18.8% and bounced cheques were down 12.7%. Year-to-date through August, insolvency is up 2.5% from the same period of last year.
*Translated by Rodrigo Mendonça
