Brazil remains among the countries with the highest indebtedness index, according to data from the Consumer Indebtedness and Default Research (Peic). In April, the debt commitment reached 77% of families. This raises doubts about the ability of part of the population to invest in crypto assets, especially at a time of appreciation of Bitcoin (BTC).
The survey, released by the National Confederation of Commerce of Goods, Services, and Tourism (CNC), shows that default has increased, rising from 28% in March to 29% in April. Furthermore, 12% of families stated that they are unable to pay off overdue debts.
CNC indicates that currently, about 30% of Brazilians' monthly income is allocated to debt repayment. In these cases, credit cards are the main reason for indebtedness, present in almost 84% of cases.
Credit is used for emergencies and debt payment.
Another study conducted by the Locomotiva Institute at the request of 99Pay revealed that 75% of respondents took out some form of financing in the last 12 months, with 53% resorting to this mode more than once.
Among credit products, personal loans were the most used, with respondents citing fixed installments and more predictable rates as advantages. For 53%, this option served to reorganize the household budget in the face of emergency situations.
However, 31% said they used credit to pay off existing debts, highlighting a recurring cycle of indebtedness. However, the situation is even more critical among families with an income of up to three minimum wages: 81.1% are in debt and 37% face overdue bills.
Gender disparity also affects the crypto market.
The data from Peic and the 99Pay survey indicate differences between men and women. In April, 78% of men were in debt, compared to 77% of women.
Despite the slight difference, the impact of default and the absence of financial reserves was more severe among the female audience: 76% of women reported not having savings, compared to 70% of men. The taking out of personal loans also followed this trend, with 76% of them and 73% of him using this form of credit.
How does indebtedness hinder access to the crypto market?
While the market follows the appreciation of Bitcoin, which records all-time highs, the Brazilian population may remain on the sidelines of this expansion phase. According to projections from CNC, indebtedness is expected to continue rising throughout 2025, limiting the investment capacity of a large part of the Brazilian population.
According to the Investor X-Ray, only 4% of people who manage to save some money direct resources to digital currencies. In fact, this helps to highlight the low penetration of the crypto market among small investors in the current scenario of economic instability.
Indeed, this scenario promises to become even more controversial after the announcement of 50% tariffs on Brazilian products by the U.S. Even if the economic impact is restricted to Donald Trump's country, if the Brazilian government opens a front of dispute, escalating a trade war, inflation may rise on this side. This process would further increase prices in essential sectors, such as food, compromising the already limited monthly income slice of Brazilians.
The article 'Increase in Indebtedness Limits Brazilian Access to Crypto Assets' was first seen in BeInCrypto Brazil.
