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Lula Orders Finance Chief to Tackle Household Debt

Rising use of high-cost credit has turned household debt into a drag on perceived economic gains.

Overview

  • Lula, speaking Thursday in Anápolis, told Finance Minister Dario Durigan to present ways to reduce household debt and make paying down balances easier.
  • The presidential palace began coordinating with economic officials and political advisers, with news reports saying proposals are due in the coming days.
  • He proposed airing a national program that teaches salary and household budget management to curb harmful borrowing habits.
  • The president said Federal Police are on the streets detaining people who raise fuel and food prices to exploit consumers and truckers.
  • Recent data cited in coverage show family debt near 48.4% of income in December 2024 and debt-service burdens up to 29.2%, as more borrowers shift into costlier credit.