Imagine that the card bill has arrived and you do not have the money to pay the full amount charged. In the bank app there is an invite button that says you can only pay part of that level and leave the rest for later. ready. You are one click away from getting into a kind of snowball.
The official data for Central Bank (BC) released this week shows that more and more Brazilians are sticking to the app’s catchy little button, getting sucked into a spiral of debt. To a large extent, this increase in defaults also occurs because of the interest charged on the amount not paid.
According to official information, the average interest on a revolving card can reach 440% per annum. As a result, in the last month of June, Brazilians reached an alarming mark of R$77.46 billion in debt due to this method. The level is double that of two years ago: R$38.48 billion in 2021.
In the same period, the default rate for Brazilians increased from 27.65% to 49.05%. Analysts criticize both the amount of interest charged, as well as the fact that many banks extend credit to customers above the consumer’s income limit.
Rotary changes
This whole system worries members Federal government. The Ministry of Finance, for example, has been very critical of the interest charged on revolving credit cards. Minister Fernando Haddad (PT) He was leading a front for changes in this sense.
“We have to be very careful not to influence buys in trade and not create another problem to solve the first one. So our focus is Rotary. Rotary cannot go on as is and I have a commitment from the banks that this negotiating table has a deadline”announced the minister.
I wouldn’t expect the solution because, if it wasn’t, the working set would be extinguished. But the central bank is part of this group and we are in constant interaction. Here at The Farm, the Secretariat for Economic Reforms is leading the way. But Veerappan and IDV are also in tune to look for a formula for the problem,” track him down.
central bank
In fact, the central bank also monitors the consequences of credit card spins. This week, for example, the head of the institution, Roberto Campos Neto, indicated that this method should be canceled by banks soon.
“Without Rotary, the unpaid bill will go directly to the installment plan. It should be announced in the coming weeks.” said the central bank chief, during a public hearing in the full Senate. “We should have taken measures to resolve the rotation beforehand.”I confess.
However, he received criticism from bank representatives after this statement and took a few steps back in a recent interview. “Nobody wants to cause any kind of disruption that might affect people”Campos Neto said.
How to escape from rotary
While the federal government and the central bank are not taking action to reduce the revolving credit card interest problem, it is up to the citizen to beware of falling into the snowball.
One of the most important tips is to write down all your expenses on a piece of paper to understand exactly how much will be charged on your bill. Thus, citizens will know when they can shop without compromising their income.
Another important tip is to opt for boleto negotiation. Instead of getting into the revolving system, the consumer can call their bank to negotiate the amount of their bill, which can get them to pay off the debt at lower interest rates.
