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Half of all Brazilian families are in debt

- More than half of all Brazilian families (54.36%) say that they are in debt, and the average debt is 5426 reais (around $3,100 dollars), according to a study released today by the State Institute of Applied Economic Research (IPEA).

According to research, which polled families of 3,800 homes from 214 cities in the country, 26.35% said they were a bit indebted, 16.89% said they was “more or less” in debt and 11.12% admitted to be heavily indebted. Only 45.64% said they did not owe anything to anyone.

According to IPEA, about 15% of indebted households has obligations of up to half of household income and 21% have debts equivalent half up to all the income of the family. For 23.5% the debt is equivalent to between one and two times the family income, 16% it is between two and five times the family income and 23% have financial obligations that exceed five times their earnings.

Among families of lower income, 58.54% admitted being in debt, while only 36.92% of higher income states they have such responsibilities.