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Desenrola Brasil Program: A light at the end of the tunnel for millions of indebted Brazilians
Launched by the federal government, the Desenrola Brasil Program’s main objective is to help more than 70 million Brazilians who are in debt. The federal government structured the initiative into two categories, based on the individual’s minimum wage. First, the first category is intended for those who earn up to two minimum wages per month. In contrast, the second category covers individuals who earn between two minimum wages and 20 thousand reais.
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The first to negotiate their debts under Desenrola Brasil were members of the second category, starting on July 17. Negotiations take place directly with the banks, and many are already in the process of clearing their names. On the other hand, the first category is expected to begin renegotiations in September.
However, the program is not as simple as it seems, and it is crucial that you are aware of all the aspects and details that may affect you.
Are debts of up to R$ 100 forgiven with Desenrola?
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A crucial point we must note is that the program offers forgiveness for debts of up to R$ 100. However, this only applies to those whose names are already listed in credit records as delinquent. If a debtor has a debt of up to R$ 100 but their name is not listed in negative credit records, they will have to renegotiate that amount.
Which debts does Desenrola Brasil cover?
It is important to emphasize that the program applies only to bank debts. Therefore, debts for utility bills, appliance stores, and the like are not covered.
For the first category, the debt limit to be renegotiated is R$ 5,000, provided that the debt is not related to rural credit, real estate financing, operations involving funding or third-party risk, or debts with collateral.
The second category, which is currently negotiating, can renegotiate bank debts of up to R$ 20,000, provided that the individual incurred these debts between January 1, 2019, and December 31, 2022.
We must consider the statute of limitations on the debt as an important factor.
According to Brazilian law, after 5 years of default, the debt can no longer be collected through the courts and the debtor’s name is removed from credit protection services. However, when renegotiating the debt through Desenrola Brasil, the statute of limitations period is restarted. Therefore, it is vital to be aware that if you renegotiate but are unable to meet the new obligations, your name may be listed as delinquent for another 5 years.
Beware of fraud and scams
Shortly after the program was launched, scams began to appear, taking advantage of people’s lack of knowledge. Therefore, avoid clicking on unknown links, do not communicate with unknown representatives, and access the official website or app of the bank with which you have a debt to negotiate directly.
Interest rates and the true cost of the debt
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The interest rates applied by banks during negotiations can have a significant impact on the final amount the debtor will have to pay. Although the possibility of smaller installments and a longer repayment period may seem attractive, if the interest rate is not advantageous, you may end up paying much more than the original debt amount.
Therefore, it is essential to do the math and check whether the agreement is truly worthwhile. Remember, the main goal is to resolve your debts, not make them more expensive.
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