A recent Datafolha survey revealed worrying data: 67% of Brazilians have debt. During an interview with Now CNNJeferson Bittencourt, macroeconomics leader at ASA, stated that the interest rate increases debt.
The expert explained that, from a macroeconomic point of view, the level of the interest rate is decisive for this situation, leading many people to a condition of over-indebtedness and even insolvency.
“The first step for us to have lower interest rates and enable a more structural exit for the population from these is to accept weaker activity and mainly to accept a lasting fiscal adjustment”, said Bittencourt, when asked about possible solutions to the problem.
The ASA macroeconomics leader mentioned that, after the first, in 2023, new credit programs emerged and ended up generating new debts for the population.
“We have interest rates remaining at a higher level and new credit programs for the population”, he pointed out.
According to the expert, it has diverse roots, such as low purchasing power and income level, which often force people to delay basic bills to maintain essential consumption.
Another highlighted element is the lack of financial education. “People often don’t have enough information, they don’t have enough knowledge about the risks of this high debt, the risks of it snowballing and becoming unpayable,” said Bittencourt.
For the ASA macroeconomics leader, “the population takes on debt without being very clear about the origin and consequences of this debt.”
