One of the most unequal countries in the world, Brazil is full of contrasts. Slums exist side-by-side luxury homes. Violence is rampant, as there are few opportunities for those born into poverty.

The nation once had one of the highest interest rates in the world. Today, Brazilian central bank interest rates are at about 2.250 percent. (The U.S. rate is only 0.250 percent.) But the fact that interest rates are falling year after year—reaching the lowest level in June—does not mean that consumers have access to cheaper credit.

Brazil also has serious problems of functional illiteracy; many of the nation’s most vulnerable are led into debt without understanding the concept of interest rates. Consumers using the revolving credit of their credit card (when someone cannot pay the full amount of their bill on the due date) are paying, per year, fees of more than 300 percent. For bank overdrafts, the interest rates exceed 140 percent.

In the face of this reality, hundreds of young YouTubers from low-income and mostly Black backgrounds have emerged to fill the gap left by a deficient educational system. Their objective: Educate the masses with basic notions of economy and finance.

Full article at Hacking Finance’s website. Date of publication: 31/07/2020.