Brazil Household Debt Stabilizes at 81.6% Amid Rising Default Rates

Brazil’s household debt level held steady at 81.6% of family income in June after five consecutive months of increase, according to the Confederation of National Commerce (CNC). The average delinquency rate remained at 29.9%, close to the record high recorded in May.

In the state of Paraná, 87.2% of families reported having some form of debt in June, while the share of households with overdue accounts rose to 16.7%, up from 15.2% the month before.

A separate survey by the Brazilian Association of Credit Card Companies (Abecs) found that 85% of consumers pay their credit‑card bills in full each month. André Maniezo, CEO of INFOX Payments, said, “the data shows a different reality: most consumers use credit responsibly and pay their bills in full.” This behavior lowers perceived risk and encourages retailers to expand own‑credit programs.

BTG Pactual’s retail research highlighted that, because of high household indebtedness and double‑digit interest rates, execution has become the most valuable commodity for Brazilian retailers. Discretionary categories are pressured, while food and pharmacy sectors remain resilient.

Overall, debt levels stay near historic peaks, and the combination of stable indebtedness, rising defaults, responsible credit‑card use, and shifting retail strategies underscores the ongoing impact of consumer debt on Brazil’s economy.