Amazonians are “rooted” in the red, according to data from the Chamber of Shopkeepers (CDL), where more than half of the state's population is in default, with debts ranging from R$ 73.5 million to R$ 73.7 million.

And what's striking is the profile of the debtors: young people aged between 18 and 24 are starting their financial lives in debt, with 7.77% in default, while adults aged between 30 and 39 lead the ranking, with 26.68%.

Middle-aged people, aged 40 to 49, are in second place, with 22,88% in default, followed by the 50 to 64 age group (18,24%), 25 to 29 year olds (13,54%), and the 65 to 84 age group with 9,11% in debt. Lastly, there are the over-85s, with just 1.19%, showing that the popular saying “listen to your elders” makes a lot of sense, at least when it comes to finances.

For Elias Sfeir, president of the National Association of Credit Bureaus (ANBC), the scenario is a reflection of the economic “arc of life”. “It's that phase when young people leave home, make commitments, then come marriage, children... and the debts grow together,” he explains.

For Sfeir, the lack of financial education from an early age is one of the main factors that lead young people into early debt

“Amazonas has 1.55 million defaulters, of which 1.08 million are in Manaus. The capital concentrates the problem, but the behavior is similar to the rest of Brazil,” jokes Sfeir, who never misses a chance to make a pun: “Here, there is no shortage of people ‘tangled up’ in debt collection.”.

Young people start early

The figures show that young people are entering the credit market at an increasingly early age, but without proper preparation. “Today, at the age of 14, teenagers are already doing Pix, right? So financial education has to start early, in high school,” argues Sfeir.

ANBC has invested in short videos and educational materials to teach young people the basics and prevent them from defaulting, such as videos on the themes: “I'm negative, now what?”; “How can I improve my credit rating?”; “How can I avoid fraud?”. But until education comes, the way is to learn the hard way. Sfeir gives tips for those who are already in the red and want to get back into the warmth: “First, list all your debts. Then prioritize the most expensive ones. And above all, don't run away from the creditor! Negativity is an invitation to talk, not a seven-headed monster,” he added.

One of the myths that most people fall victim to is that the debt expires. “Ah, in five years it's gone, right? It's not like that,” warns Sfeir. “The negative record disappears, but the debt remains. And if you don't negotiate, it could end up being sold to another institution and start again from scratch. So it's best to stick to not running away and keep negotiating,” he said.

For those already in debt, the way out is to plan and, if possible, swap expensive debts for cheaper ones. “Taking out a 3% loan to pay off a 5% loan can be a good strategy, but you have to honor the commitment. But to do this, you need to do a lot of analysis to see if it's worth it,” he says.

Key to getting out of the red

The president of ANBC, Elias Sfeir, warns against compulsive consumption, which affects around 10% of defaulters.

“There are people who pay off their debts, clear their name, and a month later they're already dirty again. You have to consume consciously and know what you can afford. Many defaulters are compulsive, so the family needs to be on the alert, because this can harm the family itself,” he says.

Listing debts, prioritizing the most expensive ones and negotiating with creditors are essential steps to getting out of the red, advises Sfeir

And for those in a tight spot, the tip is to let go: “Sell the extra cell phone, hold on to the change of sneakers, cut back on the weekend beer. Sometimes you have to tighten your belt to breathe again. This will help you to have the extra money. But the best tip of all is to list your expenses. If you're spending most or all of your salary, that's already a sign that you could fall into default”.

Meanwhile, Amazonas continues to have high levels of default, with figures showing that the problem is still far from being resolved. But, as Sfeir says, “credit is trust, and trust is earned through dialog and transparency”. In other words, the first step to getting out of the red is to face the collection head-on - and, of course, avoid further compromises in your financial life.