São Paulo – Brazilian consumer insolvency was up 4% in July from June, the consulting firm Serasa Experian has reported this Tuesday (12th). According to the company, outstanding debt has also increased July on July, by 11%. Year-to-date, the indicator was up 0.6% from the same period in 2013.
According to Serasa’s survey, debt claims were up 21.2%, bounced cheques were up 11.6%, non-banking debt (stores, financing companies, telephone, water and power bills, and credit cards) was up 6.1% and debt to banks was up 0.3%.
According to Serasa, insolvency has increased as a consequence of the current scenario of high interest rates, high inflation and weak labour market. The end of World Cup-related holidays and off-days has also influenced the results.
*Translated by Gabriel Pomerancblum
