Brazilian households grew more indebted and delinquent in July, according to the National Confederation of Trade (CNC). The proportion of families with bills to pay rose slightly from 78.4% in June to 78.5% in July, marking six consecutive months of increases.

Delinquency—the share of consumers with overdue payments—increased from 29.5% to 30%, the highest level since September 2023. Meanwhile, the share of consumers unable to pay overdue debts also rose to 12.7%.

Low- and middle-income families faced the greatest difficulties, with indebtedness rising among those earning up to five minimum wages. Credit cards remain the most common debt type, though their use declined slightly, while store installment plans grew.

CNC’s chief economist, Fabio Bentes, highlighted growing caution among families, with a reduction in average income committed to debt despite rising delinquency. He warned that indebtedness and defaults are expected to remain elevated throughout 2025, requiring attention from authorities to avoid economic stagnation.

Original Story: CNN Brasil | Author: Daniela Amorim
Edition and translation: Prime Yield