Brazil’s household debt hits record high, with over 80% of families in arrears

A national survey released by the Confederação Nacional do Comércio (CNC) shows that 80.9% of Brazilian families were in debt in April 2026, the highest level since the series began. The surge is driven by Brazil’s world‑leading interest rates, with credit‑card revolving debt costing between 428% and 440.5% annually and accounting for 83.6% of household obligations, consuming about 54% of family income. Economists warn that 12.3% of families say they cannot repay their debts, raising concerns about consumption, job growth and investment.

In the city of Cuiabá, the regional CNC‑Fecomércio survey recorded a modest decline: the share of indebted households fell from a peak of 86.1% in February to 85.5% in May 2026, while delinquency dropped to 15.9% from 16.5%. Credit cards remain the dominant debt source (87.4% of local debts). Officials note the slowdown but stress that the overall debt burden stays severe, limiting consumer spending and slowing economic recovery.

Policymakers are debating stronger consumer‑protection measures and debt‑renegotiation programs such as “Novo Desenrola Brasil,” amid calls for structural reforms to curb the cycle of high‑cost borrowing.