Brazil's Household Debt Becomes Key Election Issue as Delinquency Rates Rise

Household debt has become a central issue in Brazil's presidential election, with data showing delinquency grew 12% under President Luiz Inácio Lula da Silva's current term and 35% under former President Jair Bolsonaro, according to the National Confederation of Commerce (CNC). Alternative data from credit bureau Serasa, which counts individual CPFs rather than families, shows delinquent individuals rose from 59.7 million in 2018 to 65.2 million in 2022 under Bolsonaro (11% increase) and reached 84 million this year under Lula (21% increase). Experts attribute the problem to credit expansion policies, high interest rates, and economic growth driven by consumption rather than productivity, a pattern maintained across recent administrations. Political scientist Carlos Melo notes that 42% of current delinquents have been in that situation since before 2016, and the issue has become politically charged as candidates seek ownership of solutions. Both Lula's and Flávio Bolsonaro's campaign programs offer limited remedies, while consumer advocates criticize both governments for undermining Brazil's 2021 Super-indebtedness Law by setting inadequate "minimum subsistence" values.