Debts Increase, but Few Seek to Negotiate Debts in Brazil

The average indebtedness of Brazilian households in April reached its highest point in 12 years, according to the Consumer Indebtedness and Default Survey (PEIC) released by the National Confederation of Commerce of Goods, Services, and Tourism (CNC).

According to José Roberto Tadros, president of CNC, this number reflects the inflationary pressure on budgets. “Persistent and widespread high inflation keeps the urgency for credit high to restore income,” he says.

However, with the consecutive increases in the Selic Rate, credit becomes heavier and may result in higher default rates.

This is already evident in the survey, as the percentage of indebted or delinquent households reached its highest level, that is, 28.6%.

If you find yourself in this situation, we will show you how to check your CPF and why to negotiate debts in your name.

Furthermore, we will provide a step-by-step guide to settle debts and clear your name.

Why Check Debts Associated with CPF?

First of all, it’s important to know if you actually have any debt in your name. To do this, you need to check the debts associated with your CPF.

The first places to perform this verification are the credit bureaus, Serasa, SPC, and Boa Vista SCPC. In most cases, it’s possible to check CPF online and for free.

Next, we will explain how to negotiate debts associated with your name.

CPF Verification on Serasa

Access the website serasa.com.br or download the Serasa app for free.

Enter your CPF number and click “verify now.” Provide your password.

If this is your first time accessing the website, fill out the registration with your CPF, full name, date of birth, email, and create a password.

Done! Once you log in, you will see the information associated with your CPF on the screen. In the “My CPF” section, pending debts will be detailed by type:

Negativized debts; Debt notices; Protests at the notary’s office; Bounced checks; Legal actions; Bankruptcies.

If you prefer, download the free Serasa app from the Google Play and App Store to negotiate debts associated with your CPF.

CPF Verification on Boa Vista SCPC

You can also check your CPF online and for free on Boa Vista SCPC. Access the Consumer Positivo website and click on “CPF Verification.”

If you’re not registered with the institution yet, you can register for free on the spot.

After that, simply enter your CPF and password, and you will see the following information on the screen:

Credit score on Boa Vista SCPC; Positive Registry; Any negativized debts.

CPF Verification on SPC

Finally, the third credit bureau to check debts associated with CPF is SPC Brasil (Credit Protection Service).

However, this verification is paid. Follow the steps below:

Access the website spcbrasil.org.br and click on “CPF Verification.” Choose the credit package to perform the verification and make the purchase. After the purchase, you can verify if you have negativized debts associated with your name.

Why Check Debts Associated with CPF in Different Places?

The negativation of a debt may occur only at one of the credit bureaus.

Therefore, the debts shown on Serasa, for example, may differ from those shown on Boa Vista SCPC.

For this reason, it’s important to perform periodic checks on both free services to track any pending issues associated with your name.

Verification on Registrato

In addition to checking at the credit bureaus, it’s also possible to verify certain types of issues contained in the Registrato, from the Central Bank.

Among the free information that can be checked in the Central Bank’s system are:

Pix keys registered with your data; Loans and financing associated with your name; Banks and financial institutions with which you have an account or relationship, such as investments; Bounced checks; Debts with public agencies registered in the Cadin; Foreign exchange operations and international capital transfers.

Why Check Prescribed Debts?

Often, there is uncertainty about the meaning of debts that are not displayed to the market.

In practice, these debts are known as already prescribed or inactive debts.

According to the Consumer Protection Code, consumer records cannot contain negative information older than 5 years.

However, this does not mean that the debt ceases to exist. It’s just not displayed to the market when a CPF query is made.

At Serasa, for example, you can check prescribed debts, even if they are not available to the market. This is because the free Serasa query is individual.

What to Do to Pay Off and Regulate Debts?

To settle prescribed or active debts, the simplest and most direct way is to contact the creditor company directly.

In other words, if you owe a public service company, contact the company directly.

However, some companies sell debts to credit recovery offices. In these cases, debt negotiation is done with the recovery office.

In other situations, the debt is protested at the notary’s office. In these cases, in addition to paying the debt to the company, you will also need to cancel it at the notary’s office and pay the corresponding fees.

Why Pay Debts with Banks?

The path to pay off debts with banks is the same as resolving any financial issue.

Face the problem of indebtedness: check the debts associated with your CPF and make a list of all the updated amounts you owe.

Know the interest rate of the existing debt in order to renegotiate it later, and prioritize the debt with the highest interest rate, as it increases more rapidly.

If you receive the thirteenth salary, a bonus, or any extra resources, take advantage of negotiating a cash payment with a discount.

Evaluate if you have items that can be sold to obtain the necessary amount to pay off the debt.

Avoid intermediaries in debt negotiation. In other words, negotiate directly with the bank you owe.

If it cannot be paid in full, try to replace the current debt with another one with a lower interest rate.

Always formalize the transaction and, as soon as you make the payment, request the removal from credit protection agencies.

Why Pay High Debts with Little Money?

To pay off a debt when you have little available money, it’s important to know the amount due and how much you can pay monthly.

When you have high debts and limited resources, you need to adopt stricter financial control, reduce expenses, and seek to increase extra income.

Let’s look at some measures to take

Avoid using the credit card for a while. Avoid overdraft (limit of your bank account). Use a financial spreadsheet to track your expenses and income.

Learn more about personal finance and entrepreneurship. There are many free and quality resources available on the internet. Have a simple goal and set a deadline to pay off your debt.

I Can’t Pay My Debts

When a person is unable to pay their own debts, they may be considered overindebted.

The Overindebtedness Law created a mechanism to allow the consumer to negotiate their debts with all creditors simultaneously.

To do this, the indebted person must contact Procon, the Public Prosecutor’s Office, the Public Defender’s Office, or the judicial system of their state.

It’s essential to present all debts and the household budget, with details about the amount owed and to whom.

Then, the Court will summon the creditors, and the indebted person must present a payment plan for the debts.

4 Dangerous Impacts of Debts on Health and Life

Stress and health problems. Depression. Relationship problems. Decrease in productivity and concentration at work.

Knowing where to check debts associated with CPF and how to negotiate them is just the first step in restoring financial health.

Remember to pay the agreement installments on time and, whenever possible, start building an emergency fund to avoid indebtedness in the future.

Reflect on your consumption habits, seek professional guidance, and stay focused on achieving financial freedom.