Brazilian Household Debt Nears Record as Borrowing Costs Surge and Retail Confidence Sags

Overview

• Central bank data show household indebtedness at 49.8% of annual income in November 2025, the second-highest reading on record, with income committed to debt at a record 29.3%.
• The average lending rate for families rose to 60.1% in 2025, while credit‑card revolving interest averaged about 438% a year.
• Delinquency increased last year, reaching 5% in household credit and 4.1% overall in December, according to the central bank.
• FecomercioSP reports technical stability in São Paulo for January, with 68.9% of households indebted and 19.9% in arrears, and credit cards representing 79.8% of debt among indebted families.
• A CNC survey finds retail business confidence down 6.1% year over year in January, citing high rates, as the central bank holds the Selic at 15% and signals a likely cut in March.