Brazilian families hit record debt levels, over 80% of households burdened

A recent FecomercioSP survey shows that about 80.9% of Brazilian households are in debt, with roughly 30% of family income devoted to repayments. Debt is no longer limited to large purchases; families increasingly borrow to cover basic expenses such as food, rent, utilities and medication. Government initiatives like the Desenrola Brasil program have helped many renegotiate obligations, but the overall pattern reflects a structural shift toward permanent consumer financing, with credit cards and instant‑payment tools like Pix fueling the trend.

A study by Chicago Advisory Partners, using data from the Vector360 platform, estimates that Brazil’s new Open Finance loan‑portability feature could cut the debt burden in half. In a simulation, a borrower whose loan currently consumes 39% of monthly income could reduce that share to 19.7% by moving the loan digitally to a lender offering lower rates. The digital migration could be completed in five business days, intensifying competition among banks and potentially delivering benefits comparable to the impact of Pix on payments. Adoption of Open Finance remains limited—only 28% of the banked population had used it by 2025—but experts expect rapid growth as more credit products become portable.