Debt breaks record for 81.6% of families, says CNC
Brazilians became more indebted between April and May, according to the CNC (National Confederation of Commerce in Goods, Services and Tourism). The proportion of families with debt rose from 80.9% in April to a new record of 81.6% in May, the fifth consecutive month of increase.
In May 2025, this percentage was 78.2%. The data is from Peic (Consumer Debt and Default Survey).
The survey considers debts due in the form of credit cards, special checks, store vouchers, payroll loans, personal loans, post-dated checks and car and house payments.
The share of defaulting families increased slightly from 29.7% in April to 29.9% in May. This proportion was 29.5% in May 2025.
In addition, the share of Brazilian families stating that they will not be able to pay their outstanding debts, that is, that they will remain in default, remained stable at 12.3% in May, the same proportion seen in April. In May 2025, this share was 12.5%.
According to the CNC, credit cards remain the most used type of debt, mentioned by 84.6% of indebted families.
"The data reinforces the red alert in the economy due to the fact that the card carries the highest interest rate on the market: 428.3% per year on revolving credit. Default rates among families earning up to 3 minimum wages rose 1.7 percentage points in monthly terms, reaching the critical mark of 38.6% in May", the entity highlighted in a report.
The proportion of families who consider themselves "very indebted" rose to 17.0% in May, the highest level since June 2024.
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"The short-term configuration in the domestic budget pushed general default rates to 29.9% in May. As interest rates for the final consumer react slowly to the reduction in the Selic rate, the cost of carrying these debts consumes purchasing power. Even more so, taking into account the recent behavior of inflation, thus increasing families' perception of risk", assessed CNC's chief economist, Fabio Bentes, in a note.
On the other hand, there was an increase in payment terms, with 33.3% of families having debts for more than a year, and a reduction in the average percentage of income commitment to 29.3%, said the entity.
Among defaulters, 49.3% reported having debts overdue for more than 90 days, the lowest share for this year. The average delay time for defaulters' accounts fell to 65 days.
"In view of the CNC's projections that point to new increases in gross debt in the coming months, market expectations are turning to the recently launched Desenrola 2.0. The federal program expects to repeat the deceleration of indicators, observed in the first version of the program, in 2023", pointed out the CNC.
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Source: CNN