INDEBTEDNESS OF BRAZILIAN FAMILIES AS A REFLECTION OF EASY ACCESS TO CREDIT IN A CONTEXT OF LIMITED FINANCIAL LITERACY

Abstract

Household indebtedness and delinquency have emerged as highly relevant issues in Brazil, particularly concerning credit. The ease of access to credit, coupled with low financial literacy, increases the risk of indebtedness among low-income families and perpetuates social inequality. This study investigates the credit-indebtedness relationship from the perspective of financial misinformation in Brazilian society, aiming to identify the current situation and propose potential countermeasures. An exploratory, bibliographic, and documentary research design was employed, with qualitative data analysis considering historical records of credit, indebtedness, and financial literacy in Brazil. The results indicate that, historically, there has been insufficient focus on equipping consumers for informed financial decision-making. Moreover, financial institutions have often acted exploitatively towards lower-income populations, charging high interest rates and fostering rapid debt accumulation. The study demonstrates that financial literacy has the potential to curb the growth of indebtedness and its negative effects, promoting fuller financial inclusion. Therefore, the research contributes to understanding the historical causes of indebtedness and highlights pathways for more equitable and effective solutions, aligned with the security and needs of Brazilian households.