Brazilian household debt hits historic high, families at financial limit

A June survey by the Confederação Nacional do Comércio shows that 81.6% of Brazilian families have some form of debt, while 29.9% are behind on payments. Credit remains the main tool for balancing household budgets, with credit cards used by 84.7% of indebted families. Although the overall debt level stabilized, it remains at the highest point in the series, indicating many households have reached the limit of income commitment.

The Superindebtedness Law, in force since 2021, now allows consumers to request debt renegotiation when repayment threatens essential living expenses. Legal experts note that the law distinguishes between ordinary debt (overdue consumer debt) and super‑indebtedness (inability to meet basic needs). Roughly 81 million Brazilians are listed in credit‑delay registries, and the high cost of living and interest rates continue to pressure finances.

Analysts warn that while credit can be a useful instrument, excessive reliance on it for everyday expenses raises long‑term financial vulnerability, especially as credit‑card interest rates can exceed 400% annually.