Desenrola Brasil: What the end of debt relief means for you

What happened with Desenrola Brasil?

According to Valor Econômico, a study by UFRJ and FGV revealed that Desenrola Brasil, the government’s debt renegotiation program, had only a temporary effect on family debt levels. Launched in July 2023, the program aimed to help millions of Brazilians renegotiate their debts, but data shows that delinquency rates returned to previous levels in less than 18 months.

The program reached R$ 52.42 billion in renegotiated debts and benefited 14.93 million people, but informal workers, who often have more unstable incomes, were unable to take full advantage of the benefits. This illustrates that, despite temporary relief, many continue to face persistent financial difficulties.

Why does this matter in the broader economic context?

Desenrola Brasil was an attempt by the government to mitigate the high levels of indebtedness affecting Brazilian families, especially those with lower incomes. The study indicates that most of the relief was captured by formally employed workers, while informal workers were left behind. This reinforces the financial fragility of those who depend on irregular income streams.

When the government intervenes in the credit market, as it did with Desenrola, it can create a false sense of security. This leads both consumers and financial institutions to adopt riskier behaviors, believing that there will always be another opportunity for renegotiation and that the risks are lower than they actually are.

Practical Impact: What Changes for You?

For those who earn a salary and pay bills, the message is clear: the solution to indebtedness is not in temporary programs, but in financial education and discipline in managing resources. If you are in debt, Desenrola may have provided momentary relief, but the truth is that the responsibility to keep your finances in order rests with you.

For example, if you have a R$ 10,000 credit card debt with high interest and managed to renegotiate it for a value with an 83% discount, this still needs to be paid. Remember that the debt doesn’t disappear and that new loans can create a vicious cycle of indebtedness. It’s vital to understand that credit should be used wisely and responsibly.

What to Do to Avoid Future Debt?

Adopting the 50/30/20 method can be a great step to avoid unpleasant financial surprises. Here are some concrete actions you can take:

• 50% for Needs: Allocate half of your income for essential expenses such as housing, food, and transportation.
• 30% for Wants: Use 30% of your income for expenditures that bring you satisfaction, such as leisure and hobbies.
• 20% for Savings: Set aside 20% of your income for investments and an emergency fund. The latter is crucial to dealing with unexpected situations and avoiding resorting to credit.

If you don’t have an emergency fund yet, start creating one. Ideally, have at least three months’ worth of expenses saved. This can prevent you from falling into the credit trap the next time you face a financial difficulty.

Connecting with Financial Organization and ADXIS

Desenrola Brasil teaches us that momentary relief does not solve long-term financial issues. To ensure you don’t have to rely on emergency programs, it’s crucial to have a solid financial plan. The ADXIS platform can be an ally in this process. With financial organization tools, you can track your expenses, create budgets, and plan your financial goals.

Don’t let a lack of planning lead you into a cycle of indebtedness. Take control of your finances and always seek financial education as the key to a more secure future.