Key facts
- Lower-income Brazilians spend 15% of income on credit card debt.
- Higher earners spend 3.75% of income on credit card debt.
- Unsecured consumer loan debt servicing is 9.6% of income for low-earners, 3.1% for high-earners.
- Household debt burdens are at their highest level in 21 years.
- Troubled assets in household lending are at their highest since 2012.
Lower-income Brazilians are increasingly dedicating a larger portion of their earnings to servicing high-interest credit card and consumer loan debt, reaching 15% of income for those earning up to twice the minimum wage, according to new data from Brazil's central bank. This compares to 3.75% for those earning more than 10 times the minimum wage. The bank is considering macroprudential measures to address rising overindebtedness and credit risk, which has pushed troubled assets in household lending to their highest levels since 2012.