According to a survey by the National Confederation of Trade in Goods, Services and Tourism (CNC), Brazilian consumers started 2017 less indebted. According to the Consumer Debt and Delinquency Survey (Peic), 55.6% of households had some type of debt in January this year, before 54% in 2016.
This research takes into consideration credit card debts, postdated check, store card, car installment, personal loan and insurance. In January this year, the percentage of these indebtedness was 56.6%. In January 2016, they were 61.6%.
The receipt of the thirteenth salary may be one of the factors that influence the reduction of household indebtedness, as it allows the settlement of various debts. However, there are still major concerns to be had in this regard.
The percentage of families who believe they will not be able to repay their debts and have remained in default has risen. In December it was 8.7 and in January it is 9.3%. In January 2016 it was 9%.
The big villain of the family budget remains the credit card, because this is the main debt for 77.3% of those with bills to pay. In second place are booklets (14.1%) and car financing (10.1%).
Remember that credit card debt can be a big headache in the medium and long term. While the government measure limiting the revolving of the card is not starting to apply, those who enter this type of loan pay interest of 500% per year on average.
We separated some tips for those who are in debt. These are simple suggestions that help pay off these amounts more easily and pay less interest.
- Always compare interest on credit types: credit card or overdraft? Both have exorbitant interest rates, for example, but if you really have to choose between them, make the accounts of which has lower interest rates. Also, remember that it is not simple interest and the longer it takes to pay off this debt, the higher it gets.
- You do not only need to use auto loans: you do not have to limit yourself to the overdraft and interest on the revolving credit card. Making a personal loan, payroll or not, will bring you many financial advantages as interest rates tend to be much lower.
- Don’t let debt roll in: it’s mid-month and you realize you can’t pay off credit card debt the following month? Well run. Remember that it is better to anticipate and already take a lower interest personal loan to pay the amount in installments than to pay high interest on the revolving.
- There are debts that cannot be delayed: Does the first installment of car insurance expire next month and will you be unable to pay? Be careful as delaying this type of installment may cause your insurance to be canceled. Always be aware of the contracts you sign and know the consequences of late payments.
- Plan yourself: It sounds like an old tip, but do you know how much your budget is available if you want to buy something today? Keeping this type of answer in mind is very important, even if it is only an estimate and not an exact value. With that in mind you can even know when to take advantage of that promotion you’ve been waiting for, for example, without making a purchase a credit card issue.
- Your fixed bills cannot exceed your income: rent, insurance, health insurance, school, electricity, water, gas, etc. Add it all up and see how much you usually spend on your credit card. Is this exceeding the value of your monthly income? Red alert, or you will end up in debt.