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According to research by data company TransUnion, 40% of Brazilian families say their income fell in the first quarter of 2022. The main reason for the decline was lower wages or job loss.
Low-income families were the most affected by the cut. 53% of people earning up to R$1,000 indicated that the household budget decreased in the presented period. Among high-income families, 35% of those earning between R$5,000 and R$10,000 per month were affected by lower income, and 24% of families earning more than R$10,000.
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Because of the low income, 77% of respondents answered that they are concerned about whether they will be able to pay the bills in full, as well as the maintenance of the house and loans. Of those who lost income, those who say they won’t be able to pay at least one of their current bills account for 60%.
Financial Impact
In addition to the financial impact of the Covid-19 pandemic, the increase in inflation and the policy rate is weighing on the pockets of Brazilians, resulting in a reorganization of spending, according to TransUnion Brasil’s vice president of business development, Claudio Pasqualin.
The reductions in income and layoffs were greater than the increase in salary and opportunity, and while 24% of respondents said they had someone at home who lost their job and 22% had a family member with a reduced salary, only 13% said someone started a new business from home, and 11% got a salary increase and only 7% got a new job in that period.
Cut costs
Nearly half of the people interviewed (49%) will have to cut back on extra expenses, such as traveling, eating out and going to concerts and movies, so that the paycheck lasts until the end of the month.
A large portion (34%) also plans to cut spending on expensive purchases such as cars, appliances, and retail (along with apparel and electronics) in the next quarter.
Inflation also affected decisions about loans and financing, with more than half (56%) of respondents saying that an increase in interest rates has an impact on their decision to apply credit In the next twelve months.
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Photo: Prostock-studio / Shutterstock.com
