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A warning from the credit bureau sector 

São Paulo, March 30, 2020 - The period of social isolation is a challenge for everyone. During this period, care must be taken with physical, mental and financial health.

More time spent online, greater emotional vulnerability and prolonged exposure to consumer appeals can encourage impulse buying. And, consequently, generate future debt problems, not least because there is the possibility of a reduction in individual and family income.  

To avoid unnecessary headaches, the National Association of Credit Bureaus (ANBC) highlights eight fundamental financial precautions for this period:

1. AVOID OVERSTOCKINGSome people are buying more than usual in order to stock up, but the bill will come due. The practice of stockpiling is unnecessary since, according to information from the authorities, the supply of basic items will be maintained. In fact, the time is ripe for caution and necessary purchases of essential items. 
2. AVOID EMOTIONAL PURCHASESshopping can be a pleasure, especially when you can do it from the comfort of your own home. But first you need to assess the need for each item carefully, without letting the impulse and ease of online shopping jeopardize your budget in the near future.
3. PRIORITIZE THE MEDIUM AND LONG TERMThe economy as a whole is being affected, and companies may need to cut back on their spending. For this reason, it is necessary to control spending in order to ensure survival even in the face of potential job and income losses.
4. RE-EVALUATE LOANS AND FINANCINGcalm should be the key word when thinking about loans and financing that have already been taken out. Seeking out creditors and finding out what possibilities there are for renegotiation is a necessary attitude. These times affect everyone and many companies are willing to improve their dialog with customers.

1. USE SENIOR CITIZENS' CREDIT SPARINGLYElderly people, especially those who have access to payroll loans based on their pensions, should avoid taking out debts in the name of family members. This is an old recommendation, but it should be reinforced in times of greater financial vulnerability, as elderly people who take out a debt today to pay a third party may not be able to deal with a medical emergency in the future. 
2. KEEP AN EYE ON SMALL EXPENSESStaying at home longer can encourage small purchases of services such as streaming videos and ready meals (or meal deliveries). You need to be careful, as small expenses can become large debts.
3. DISCOVER THE IMPORTANCE OF SAVINGworking from home can lead to a reduction in some expenses, such as restaurant meals, fuel, parking, travel fares and entertainment. This can be a good time to save some of these amounts, after all, crises pass and learning is what remains. 
4. INVEST IN YOUR DEVELOPMENTIt is advisable to use your time at home productively. There are many free online courses for professional development that can be very useful if you lose your job. One on financial education, for example, can be invaluable during and after quarantine. 

Long periods at home can also be positive for organizing your financial life. For example, it's a good time to review the budget and check the monthly income and expenditure spreadsheet to see which bills can be cut.

And for those who have entered quarantine while in default, it's worth keeping an eye out for online debt renegotiation fairs. The recommendation is to keep an eye on the fair announcements on the credit bureaus' websites. Significant discounts on the debt and payment in a larger number of installments are usually offered.

ANBC Press Relations

Regina Pimenta: (11) 98136.6835 regina@pimenta.com

Ana Carolina Rodrigues: (11) 98674.0348 anacarolina@pimenta.com