Approximately 60% of Families in São Paulo Currently Struggling with Debt, Report Reveals

Did you know that every financial commitment made, whether up to date or late, is considered debt? The Survey on Family Debt in the State of São Paulo — carried out every year —, produced by the Seade Foundation, revealed that around 60% of families in São Paulo have debt, but only half of them manage to meet all their commitments by the day due date. 

Therefore, 35% of families in São Paulo are in default. In around 84% of cases, debts were formed as a result of the use of credit cards, overdrafts or personal loans. Property financing or outstanding rent affects 31% of families, while car payments affect 18% of them.

Almost half of families consider themselves to be very indebted and 39% of them do not know when they will be able to meet their financial obligations; 51% are unable to pay some essential public services on time, such as water, electricity and gas bills. Furthermore, 63% are unable to pay their food and pharmacy expenses. 

Changes 

The data presented by the Seade Foundation generates general concern, since, in addition to affecting the standard of living of families living in the State, it also generates an important impact on the national economy. Despite the difficulties presented, the survey also showed that the proportion of families who are managing to save some money increased from 18% to 21%, between April 2022 and July 2023.

Although the index is low, its change is taken into account as a way of understanding the economic processes taking place in the State. Data on inequality, however, did not show major changes. Currently, while 62% of families with income above 10 minimum wages are able to save, only 10% of those earning up to one minimum wage have the same opportunity.