Brazil sees credit card revolving rates climb to 432% amid consumer debt concerns

The Central Bank reported that the annual interest rate on Brazil’s credit‑card revolving credit rose from 428.4% in March to 432.1% in April. The jump reflects higher inflation, a tighter monetary policy stance, competition among banks and rising delinquency rates.

For consumers, the cost is severe: a R$1,000 balance can double within months if only the minimum payment is made. A practical guide recommends first negotiating directly with the issuer, where discounts of up to 70% on accrued interest have been reported, or transferring the debt to cheaper credit lines such as personal loans or consignado loans that charge around 1.8% per month compared with the revolving’s roughly 14% monthly rate. Budget restructuring, building an emergency reserve and monitoring credit scores are also advised to prevent a return to the revolving trap.