Record Debt: How It Affects Your Finances?

What is happening?

According to G1, over 80% of Brazilian families are in debt, with nearly 82 million people defaulting. This is a historical record that raises serious questions about the financial health of the population. The survey by the National Confederation of Commerce (CNC) reveals that 29.6% of families have overdue debts, and many cannot pay them, compromising almost a third of their household income.

These alarming figures are not just numbers; they represent the daily struggles of many people trying to balance their finances. The debt crisis is exacerbated by factors such as high-interest rates and the proliferation of virtual betting, which lures many Brazilians into a financial trap.

Why does this matter?

In the current scenario, high debt levels reflect the society's consumption behavior. With easy access to credit, many people have been using credit cards and personal loans to cover day-to-day expenses. For example, imagine you earn R$ 3,000 a month and, due to installment purchases, end up committing R$ 900 just to pay debts. That represents 30% of your income, a significant amount that can strip you of your financial freedom.

Furthermore, with the SELIC at 14.75% per year, the interest rates on revolving credit are exorbitant, potentially exceeding 400% annually. This means that if you fail to pay R$ 1,000 of your credit card bill, you could end up owing over R$ 4,000 by the end of the year. The cycle of debt becomes a difficult snowball to control.

What changes for you?

If you find yourself among the indebted, it's crucial to take some actions. Here are some practical tips:

• Organize your bills: Make a list of all your debts, including amounts and interest rates. This will help you gain a clear view of your financial situation.
• Prioritize payments: Focus on debts with the highest interest rates first, like credit card debt.
• Negotiate: Reach out to your creditors. Many institutions are open to renegotiation, especially in times of crisis.
• Avoid new debts: Resisting the temptation to use credit can be challenging, but it's essential to regain control of your finances.

Concrete actions you can take

To organize your finances, the 50/30/20 method can be a useful tool. Allocate:

• 50% of your income for basic needs (housing, food, transportation);
• 30% for wants and entertainment;
• 20% for savings and debt repayment.

For example, if you earn R$ 3,000, this would mean setting aside R$ 1,500 for your needs, R$ 900 for wants, and R$ 600 for savings or debt repayment. This will help create a financial reserve and prevent you from falling into a debt cycle.

Connection with financial organization

The current scenario shows how vital it is to be aware of your financial health. ADXIS can be a great ally in your financial organization journey, providing tools and guidance to help you control your expenses and achieve your goals. Don’t let debt control your life. With planning and discipline, it is possible to reverse this situation and ensure a more secure financial future.