82% of Brazilian Households Hold Debt, Central Bank Warns of Credit Risks

In Brazil, 82% of households hold debt in the form of credit cards, loans, and installments, marking a six-month streak of record highs. Central Bank President Gabriel Galipolo warned of the risks associated with consumer debt and unsecured loans, pointing out that despite improvements in employment and income, households have not been able to reduce their debt. In a survey conducted in July, the delinquency rate was 29.8%, with 29.5% of household income being used for debt repayment. Household debt has reached 49.8% of the cumulative income over the past 12 months as of May 2026, with the ratio excluding mortgage loans also at 31.1%. The average interest rate for revolving credit cards was 15.13% per month as of June 2026, while unsecured personal loans showed an annual rate of 149.5%. The Central Bank plans to strengthen risk assessments and loan reviews by financial institutions. Major banks in Brazil are adjusting their lending strategies to focus on secured products and high-income borrowers, while reducing exposure to unsecured loans and low-income individuals.

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