Brazilians face high credit card debt burdens
Lower income Brazilians allocate four times more earnings to credit card debt than wealthier earners. The central bank highlights rising household burdens and considers new macroprudential steps.
Lower-income borrowers in Brazil are spending 15% of their monthly earnings on credit card interest, creating fresh strains across the financial system. The data highlights a growing reliance on high-cost consumer borrowing since late 2023 under President Luiz Inacio Lula da Silva. Policymakers are now weighing new macroprudential rules to curb overindebtedness and protect financial stability.
