Nearly Half of Brazilian Adults in Default as Debt Crisis Deepens

Brazil faces a growing debt crisis as official data show a record 75.7 million adults—nearly half the country’s adult population—are now in default, according to Serasa.

Serasa Experian is Brazil’s leading credit bureau and provides monthly data on the number of consumers in default, the average value of debts, and the total value of overdue debts.

The average debt per person in default has reached R$1,588, and the total value of overdue debts stands at R$438 ($80)billion.

This marks a 13% increase in defaults compared to March 2024, according to financial services firm Paschoalotto, which analyzed national data from sources including credit bureau Serasa.

The highest default rates appear in states like Amapá, where 61.8% of adults are behind on payments, while Santa Catarina reports the lowest at 36.5%.

The main drivers of this crisis are persistent inflation, which reached 5.53% over the 12 months through April, and the Central Bank’s benchmark interest rate, which stands at 14.75%—the highest in nearly two decades.

Most overdue debts are owed to banks and credit card companies, which account for 28.5% of the total, followed by unpaid utility bills and other services.

The average Brazilian household now spends about 30% of its income on debt payments, and one in five families allocates more than half their income to servicing debts.

Nearly Half of Brazilian Adults in Default as Debt Crisis Deepens

Despite a slight recent dip in the percentage of families in arrears, the trend remains upward.

Economists warn that high interest rates and economic stagnation continue to squeeze household budgets, making it harder for families to recover.

The pace of new defaults depends on whether households can still borrow and on the broader economic outlook.

With debt levels already high, many families have little room to maneuver, and the risk of further defaults remains significant.