ANAÍS MOTTA
SÃO PAULO, SP (UOL/FOLHAPRESS)
Seven out of ten Brazilians tend to opt for payment in installments when making purchases, shows new research from Serasa. The study identified which factors are taken into consideration when giving preference to installments.
WHAT THE RESEARCH SAYS
Most Brazilians are used to paying for purchases in installments. Even with the popularity of Pix, payment in installments has a large following. According to Serasa, 71% of consumers usually pay in installments. The data is part of the study “Relationship with Money”, carried out in partnership with Opinion Box. In total, 8,888 people were interviewed between July 27th and September 23rd.
A quarter of consumers pay in installments because they don’t have enough money. Among the factors taken into consideration before paying in installments for a purchase, the fact of not having the full amount in account to pay in cash was mentioned by 27% of those interviewed. For another 25%, the priority is to know whether or not interest is charged.
Splitting purchases as usual is a reality for 25% of those interviewed. Furthermore, 24% of consumers say they pay in installments to be able to buy more things and 23% say they prefer to pay amounts diluted over time. “Install payments seem, in fact, incorporated into the economic reality of Brazilians,” Patrícia Camillo, manager of Serasa, tells the report.
Purchases are normally made with other people’s cards. The majority (38%) of installments are made using third-party credit cards, mainly in the states of Alagoas (50%), Pernambuco (47%) and Rio de Janeiro (47%). Next come the bank slip (27%) and store-specific credit (24%).
“With good financial guidance and planning, installments can be an option in times of emergency or to achieve a dream, such as buying a property, a trip or even some durable good”, says Patrícia.
SEARCH FOR CREDIT IS HIGH
Three out of every four people have sought credit at some point in their lives. Among those who actually contracted, credit cards (53%) and personal loans (48%) are the main types sought. Payroll loans (21%) and special checks (13%) appear soon after. In last place is vehicle financing (10%).
56% of consumers are in the habit of monitoring their spending monthly. Paper notes (42%), checking invoices (33%) and checking bank statements online (29%) are the most common methods, according to Serasa.
People are more hopeful about their finances. More than half (53%) of consumers say they are more optimistic about their financial situation compared to recent years. Another 47% say they are more secure when it comes to money. Most also feel less fear (41%) now than before.
“Several factors can impact this more optimistic and hopeful vision. We saw an improvement in some economic indices, such as inflation, unemployment and interest rates, in addition to, of course, the end of the pandemic, whose negative effects lasted for a long time”, he states Patricia.
INTEREST-FREE INSTALLMENTS
Recently, the president of the BC spoke about “disciplinary” installments. Roberto Campos Neto raised the possibility of creating a fee to discourage interest-free installments on credit cards. The continuation or otherwise of interest-free installment purchases opened up a fight between large banks, retailers and fintechs.
Government and Congress seek to reduce card interest and default rates. A project being processed in Congress stipulates a period of 90 days for banks to define an interest level for the revolving loan. The text does not address interest-free payment in installments.
The end of interest-free installments would affect consumption and economic activity. “The culture of installments is very deep-rooted. When I interfere with installments, I take away the possibility of consumption for several families”, Izis Ferreira, economist at CNC (National Confederation of Commerce), explained to the report in an article published in August.
The post 7 out of 10 people usually pay in installments for purchases in Brazil, says Serasa appeared first in Jornal de Brasília.
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