A few days ago in Rio, I attended an important and exciting event titled “Entrepreneurship and financial education for women”. The event was organized by the government institution in charge of regulating the capital market in Brazil (CVM), a School of Financial education (Escola de Educação Financeira) that offers various training and workshops on these topics, and international NGO that supports and runs initiatives that improve access to financial services (PlaNet Finance).
The event was important because personal debt is a very serious issue in Brazil. Between 2007 and 2013, consumer loans more than doubled to around $600 billion in five years *, this is due to a large offering of coupons and credit cards, including credit cards that can charge 80% annual interest or more.
The abundant offering and the lack of transparency lead to a misuse of these tools. In a survey conducted by FGV on credit cards, only a third of the 1,000 people interviewed knew about the interest rates. Consequently, many people Continue Reading →