Brazil faces rising consumer and corporate debt levels

Brazil is experiencing significant economic pressure as consumer and corporate indebtedness rises. Data from the CNDL and SPC Brasil indicates that approximately 75.08 million Brazilians—representing 44.7% of the adult population—have overdue accounts. The Southern region has seen the most significant annual increase in defaults, growing by 10.7%.

In the corporate sector, the stock of defaulted company debts rose 14% between January and May 2026, reaching R$ 229.9 billion. This surge has expanded the market for distressed assets, where investors purchase non-performing loans (NPLs) at discounts of 70% to 90%.

Regional data shows varied trends. In Paraná, 87.2% of families are indebted, though the state maintains the second-lowest default rate in the country at 17.9%. Conversely, in Campo Grande, family indebtedness reached 73.8%. In Rio Grande do Sul, electricity tariffs have risen 97% over the last decade, outpacing minimum wage growth and straining household budgets.

Economists warn that the necessity for fiscal adjustments in 2027, driven by high interest rates and public debt, will present challenges for future government administrations.