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Experts are concerned about the repetitive cycle of debts after renegotiation. The Desenrola program, a federal government initiative to settle debts, could become a trap if millions of Brazilians who are recovering their credibility in the market do not know how to manage their financial resources, experts told InfoMoney.
In its launch month, Desenrola reached R$9.5 billion in financial agreements, only in Band 2, where debtors deal with their bank debts directly with banks under differentiated conditions, the Brazilian Federation of Banks (Febraban) recently announced.
Febraban clarifies that this category includes customers who have a monthly income above 2 minimum wages and below R$20,000 and who are not part of the Federal Government's Single Registry.
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From July 17 to August 18, debt negotiations reached 1.5 million agreements, reaching approximately 1.1 million banking customers. Participation in the program will extend until December 31.
In September, the second phase of the project aims to help consumers with earnings of up to two minimum wages or who are registered in the Single Registry. This segment, seen as having lower income, will have the chance to settle debts of up to R$1,000 of various types.
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Results and Impact of the Desenrola Program
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“Initially, the goal is to reduce the number of defaulters. However, many people go from defaulting to taking on new debt through renegotiation. This means they acquire another financial commitment,” says Cintia Senna, a finance specialist and doctoral candidate at Florida Christian University (FCU).
Statistics from the National Confederation of Commerce of Goods, Services and Tourism (CNC) reveal that the index of indebted families in Brazil fell slightly from 78.5% in June to 78.1% in July. This is the first decline since November 2022, and the CNC credits Desenrola as the reason for this.
“Without good financial management and a structured budget, it is very likely that this individual, who has resolved his previous debt, will fall into the same situation again due to not being able to deal with the new installments or taking on other debts”, analyzes Luan Correia, senior specialist in financial education at Unicred.
Economist Ione Amorim highlights that the program can be dangerous for the consumer by focusing on the symptom and not the origin of the problem.
“Individuals negotiate directly with banks. They often have several creditors, receive several offers and must decide on the best path. When were they prepared for this? Did they have the necessary financial preparation? This approach to dealing with debt is not effective,” questions the expert, who also heads Idec (Brazilian Institute for Consumer Protection).
Challenges in Financial Management and the Need for Education
Due to a lack of financial skills, many consumers, when participating in programs like Desenrola, do not properly analyze the proposals and, pressured by necessity, accept terms that are not beneficial.
“I recently dealt with a case related to Desenrola: a person had a debt of R$3,000. The offer was 96 installments of R$187. Almost R$18,000. Eight years paying an amount six times higher simply because the installment was “affordable”. She could have waited for the next phase of the program or evaluated the offer better, but due to lack of preparation, she got into even more debt”, reports Ione Amorim.
For this reason, the economist advocates financial education for those who provide credit. “Many in the market provide credit and renegotiate in an exorbitant and exploitative manner. The relationship with the client still occurs through continuous dependence on credit: the client gets into debt to the maximum, faces difficulties and renegotiates. In some scenarios, they never manage to pay off the amount”, she criticizes.
According to her, the relationship should be established in the short term. “Use credit, pay off your debt and be ready to apply for more credit. A truly good payer is one who starts and completes their payments,” says Amorim.
Financial education program can add to Desenrola Brasil
According to the Ministry of Finance, Desenrola will have a financial education course, aimed at the lower-income public in September.
“The course is essential so that those benefiting from the program understand how to prevent new episodes of debt and credit restrictions,” the ministry said in a statement, without detailing the content or how the public will be able to access the course.
The ministry states that Desenrola “provides a way to choose debt refinancing, making renegotiation more transparent and expanding the user’s understanding of their financial reality. This process also represents a form of education, as the individual takes ownership of it and restructures their financial situation.”
Although the program primarily targets the lower income bracket, it is a mistake to think that only the poorest face a lack of financial education.
“Just look at the amount of agreements in Desenrola at this stage: individuals who earn up to R$20,000 and still face debts for not managing their resources properly,” highlights Correia, from Unicred.
It is worth noting that, among the most disadvantaged, inequality at various levels significantly affects the budget. “Unemployment, health problems and the lack of widespread access also have an influence,” notes Senna.
Is having debt a bad thing?
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Having debt in itself is not a bad thing. Debt can often be a tool to achieve a goal, such as buying a house or investing in education. The key is to know how to manage this debt in a healthy way, without it becoming a snowball.
“Ideally, the debt should not exceed 30% of the individual’s monthly income. Above that, the situation could get out of control,” advises Correia.
“On the other hand, debts incurred through consumerism, without a defined purpose, are harmful. It is essential to understand the difference between wanting and needing”, concludes Senna.
