The demand for consumer credit shrank 11.2% in April when compared to March. Overall, consumer credit demand fell 7.6% so far this year when compared to the same period last year, the highest drop since 2008, said Serasa Experian. Compared to April 2011, the indicator dropped by 9.8%, the sixth consecutive drop in an annual basis comparison.
The demand for credit fell in all income groups surveyed. However, the decrease was slightly larger among consumers with higher incomes. Among those earning between R$ 5,000 and R$ 10,000 per month, the credit demand fell 12.5% in April, while among those who receive between R$ 2,000 to R$ 5,000 the negative variation was 12.3% in the period. The demand for credit for consumers with salaries above R$ 10,000 has fallen by 11.8%.
To Serasa Experian, this retraction can be explained by the increase in default rates since last year, which leads consumers to prioritize the settlement of current debt. “Besides, with higher delinquency rates the banks become more rigorous in approving new credit, which also help to discourage consumers seeking new financing methods.”
Source: Gazeta Do Povo