As Samantha Pearson writes in the Financial Times:

“Sick of paying high rates on your overdraft? Well just be grateful you don’t live in Brazil. The overdraft interest rate rose to 188 per cent a year in July – the highest since 1999. But what is more extraordinary, perhaps, is that Brazilians are willing to pay that much.
Paying in instalments has become the norm, for everything from socks to plastic surgery, and the concept of ‘value’ has long been replaced by ‘affordability’. That is to say, millions of young Brazilians are growing up thinking that it’s okay to buy a new computer on extortionate rates as long as you can afford the monthly payments.
However, as economists such as Tony Volpon of Nomura Securities argue, one day that overdraft will run out, there will be no room in the monthly salary for more installments, and the spending spree will have to stop. Brazil’s economic slowdown may end up being even more abrupt.”

Full article here

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