FINANCIAL EDUCATION AGAINST THE DEBT TRAP OF PUBLIC SERVANTS THROUGH CONSIGNATED LOANS

Abstract

According to recent data from the Central Bank of Brazil (BACEN), Brazilian public officials are heavily indebted due to excessive use of payroll loans. The objective of this article was to diagnose some of the reasons that lead public officials to go into debt through this "cheap" line of credit, since its interest rates are the lowest and the debt payment terms are the lowest. longer ones offered by banking institutions. This study evaluated the consequences of debt and the impact of acquiring financial skills on the consumer's relationship with his or her money. To achieve the objectives set out in this work, a descriptive research was carried out and the media are characterized as bibliographic and documentary. Through the analysis of several authors, it was found that the main cause of public officials' indebtedness is the misuse of resources from this line of credit. It is useless for credit to be "cheap" if it is contracted by those who do not use their resources intelligently. The research concluded that Financial Education trains consumers to be aware of the intelligent use of money and credit and allows them to develop attitudes, customs and habits that provide them with a more balanced and sustainable life.