Brazilian household debt reached a new historic high in February 2026, according to the latest Consumer Indebtedness and Default Survey (Peic) released by the National Confederation of Commerce in Goods, Services and Tourism (CNC).
The survey shows that 80.2% of Brazilian families currently hold some form of debt, the highest level recorded since the series began in 2010. The figure represents an increase of 0.7 percentage points compared with January and is 3.8 percentage points higher than in February 2025.
The record level of indebtedness comes alongside a renewed rise in default rates. After three months of decline, the share of households with overdue payments increased to 29.6%, highlighting growing financial pressure on families.
According to José Roberto Tadros, president of the CNC-Sesc-Senac system, the trend reflects the impact of Brazil’s restrictive monetary policy.
“Brazilian household debt has reached a critical and unprecedented level, squeezed by the maintenance of the Selic interest rate at high levels since 2025,” Tadros said. “Although credit is an essential driver of consumption, the cost of borrowing remains extremely high, creating a dangerous cycle in which rising debt is compounded by interest rates that make repayment more difficult.”
Longer delays in payments
The survey also indicates that financial stress among consumers is becoming more persistent. The average payment delay rose to 65.1 months, the highest level since late 2024. Meanwhile, the proportion of consumers with debts overdue for more than 90 days increased to 49.5%, suggesting that payment delays are becoming increasingly prolonged.
CNC chief economist Fabio Bentes said the rise in defaults is particularly concerning.
“The increase in indebtedness is worrying, as we do not usually see levels this high,” he said. “But the growth in default is even more alarming because it reflects the damage caused to family budgets by the long period of monetary tightening and high interest rates.”
The share of households that say they will be unable to repay overdue debts in the coming month reached 12.6%, slightly higher than the 12.3% recorded in the same period last year.
Income gap in debt trends
The rise in overall indebtedness was driven largely by higher-income households, particularly those earning more than five minimum wages, which tend to use credit as a way to maintain consumption without using their own savings.
Among families earning more than ten minimum wages, the proportion with debt rose from 65.5% in 2025 to 69.3% in 2026.
Lower-income households, however, remain the most affected by overdue debts. Among families earning up to three minimum wages, 38.9% reported overdue bills, and 18.6% said they are unable to repay their outstanding debts.
Credit cards remain the main source of debt
Credit cards continue to be the most common form of borrowing, cited by 85% of indebted households.
Other frequently mentioned forms of debt include store instalment plans (16%), personal loans (12.3%), home financing (9.8%), and car financing (8.9%).
Original Story: Portal do Comércio
Edition and translation: Prime Yield