Economy

Brazilians get payroll deductions to settle other debts, shows survey

Brazilians get payroll loans for three main reasons: repay some other loan, to carry out a construction or to hire a service or buy a product

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  • The research interviewed 6,000 Brazilians and discovered the main reasons for Brazilians to take this kind of loan;
  • The majority of Brazilians use the money to repay other debts.

A survey held by Brazilian Grupo H, a credit fintech that has employees of private companies as clients, mapped the main reasons behind Brazilians opting for payroll loans. The research, reported by Valor Econômico, shows that their main goal is to settle other debts.

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According to the survey, which interviewed 6,000 participants, 73% of Brazilians who have payroll deductible loans used the money to repay some previous loan.

The second main reason for taking out a payroll loan was to carry out a renovation or construction, mentioned by 14% of respondents. Also, 8% said they took the payroll loan to buy a product or hire a service and 2% of respondents said they took the loan to invest.