Bad debt in Brazil: find out the main causes of so many debts

Unfortunately, the reality of the country is that many people have already started the year with their names negative. This is because the number of defaults continues to grow, soon becoming an alarming problem of general concern. Research carried out by Serasa points out that the number of citizens with a “dirty name” has never been so high.

Read more: What are the main causes of debt today?

What is default?

The term briefly refers to the breach of some financial obligation. It is when the individual fails to pay any bill or debt. If someone fails to pay a bill for electricity, water, internet, any installment or card bill, he ends up becoming a debtor of the company that offered him the service.

Main causes of default

Of course, several factors can end up leading a person to default, especially since the situation is linked to financial life of the citizen, one where several external issues can end up interfering directly and end up changing the scenario from one hour to another.

As the main causes for finding oneself in the red and in debt, we have unemployment, as it has been pointed out by several specialists as the main cause. Which makes perfect sense, since when a person ends up being unemployed, their bills end up piling up until they find themselves in debt.

We also have the lack of financial education as something that ends up interfering a lot in the economic situation of many people. The number of people who don't seem to know how to control their spending is alarming. This certainly causes citizens to find themselves spending more than they can afford. As other causes, we can also cite the lack of knowledge, the excessive number of installments of new acquisitions and loans, as well as late wages.

How not to become unemployed

Knowing about this temporary state and its causes is very important, but one of the most valuable pieces of knowledge on this subject is respect to the main attitudes that people must adopt in order not to end up owing too much, which will certainly result in their names negative.

So, here are some suggestions that can help a lot to avoid this situation:

• Always stay informed and know how to make agreements;
• Get organized financially;
• Suspend a service if you are not using it;
• Keep track of debts and expenses on a daily basis.

These are some of the many things people can do to ensure they don't end up in debt. It is extremely important that everyone follow these tips to continue maintaining a good relationship with companies.