Recent research is showing that over half of Brazilian families are in debt with high rates of debt default being predicted. This is fueling the feeling that Brazil’s sky rocketing growth is mostly due to credit markets.
The research conducted by ‘Paulista Association of Supermarkets’ (APAS) shows that 75% of Brazilian households are finding it difficult to pay their bills leading to a prediction that defaults rates will reach a record 8%.
The Brazilian government is being proactive in launching initiatives to urge Brazilians to save and/or pay with cash. They want to assure Brazil’s economic growth which has been stellar continues and is not fueled entirely by credit.