Brazil high-income earners increase use of revolving credit

Data from the Central Bank of Brazil reveals a significant shift in credit usage patterns over the last three years. High-income individuals, specifically those earning more than ten minimum wages, have seen a 93% real increase in debt from revolving credit cards and overdraft facilities between July 2023 and July 2024.

This demographic now accounts for 23.3% of the total lent in these categories, up from 13.1%, with the total balance reaching R$ 30.3 billion. The most dramatic growth occurred among those earning over 20 minimum wages, whose share of the credit stock nearly doubled from 5.3% in 2023 to 10.5% in 2026.

Conversely, credit usage in these expensive categories has declined among lower-income groups. For those earning up to five minimum wages, the balance of revolving credit and overdrafts fell by 10.6% over the last three years. Analysts suggest this trend is driven by the deteriorating finances of the middle and upper classes, alongside banks increasing credit offers to higher-income earners to mitigate default risks associated with poorer populations.