Credit is a difficult issue in Latin America. Credit card APR interest regularly runs at 30-50 percent, upwards of five times what it is in North America. Bank loans are not a lot cheaper. Yet more than ever Brazilian consumers are borrowing and financial institutions are encouraging them to do so. When I recently opened up Read more about The Price of Consumer Debt[…]
The current trend toward rogue debtors in Brazil is a result of at least two phenomena: first, the conditions surrounding a boom in credit, including the way purchases are parceled out over time and a society with little credit experience; second, the phenomenon I wrote about last entry–the fantastical price of consumer durables here in Brazil.