According to a recent Consumer Indebtedness and Default Survey (PEIC), financial indebtedness reached 77.9% of Brazilian families in 2022, an increase of 7% compared to the previous year.
Among the main “villains” would be credit card debts in first place, with 86.6%; second payment booklets, with 19%; and car financing in third, with 10.4%, with a record default, hitting 28.9%.
“Indebtedness is often a reflection of the lack of financial education added to a compulsiveness in buying things, which can lead entire families to major financial complications”, explains Zetra’s financial consultant, Andreza Stanoski.
Following this scenario closely for some time now, Stanoski lists some important points that contributed to the increase in Brazilian debt and how often the “solutions” are, in fact, problems when it comes to balancing finances.
there is no easy money
The temptation of easy or available money is certainly one of the biggest causes of debt. Among them, credit cards and overdrafts occupy the first places in the debt rankings.
The big problem is the very expensive interest that this easy money brings with it, which always ends up becoming a huge snowball and makes the debts increase very quickly.
There are many ways to move, renovate the house and change cars, however, people prefer financing and end up paying three times the value of that asset.
Also, many people buy things that they don’t use. “And then comes the credit card bill for them to pay an overdraft, which snowballs, and they can’t get out of this debt cycle”, says the specialist.
Avoid new debts
There are debts that serve to acquire equity and improve your comfort, and other debts that serve to pay off existing debts, which normally have high interest rates. They are bad debts that need to be paid off and cancelled, which happens with financial education.
For example, a person who uses a credit card as an extra source of income should no longer use the card. This goes for the overdraft as well. “I would first cancel the overdraft and then settle and lower the credit card limit. The credit card limit must always be 30% of net income. You cannot exceed this value. If it exceeds this amount, it may be that the person goes into debt again”, explains Stanoski.
When to seek a loan?
If the only solution to a debt is to take out a loan, do so only with the help of a specialist, a financial consultant, who is the person who will help you not to enter the debt cycle again and make you manage to get out of it. rampant consumer behavior.
In the financial advisor’s work, he will not only prioritize the debts, but the achievement of that person’s goals with a focus on the solution.
“It is the same as going to the doctor when we feel pain in our body. If you have a headache, you don’t go to an orthopedist, you go to a neurologist, who is the specialist. And don’t even think about self-medication, which would be taking out loans on your own”.
Seeking the lowest interest rates is also a way out. Normally, public banks offer more attractive rates, even for renegotiating older debts. In the end, it’s all about creating habits and losing your addiction to debt.
Source: Zetra/Engenharia Comunicação