Business · Economy · 18 hrs ago
One in four Brazilians used savings or debt to pay basic bills
In Brazil, nearly one in four people used savings or took on debt in September to pay everyday expenses, including water, electricity and gas.
The figure was 24.9%, the highest for September since 2022, when it was 25.4%.
The strain affected people across income groups, with little difference between households earning above or below R$4,800 a month.
This is happening even as unemployment is low: it stood at 5.3% in the three months ending in August, the lowest rate for that period since the survey began in 2012.
Analysts say families are heavily indebted and that incomes from work are no longer improving as they had before.
The issue has become part of this year’s election campaign, with proposals to use the state-owned Caixa bank to renegotiate debt and for the government to buy old household debts at a discount.
The proposed new version of the Desenrola debt-relief program is the next step mentioned.
In September, 24.9% of Brazilians used savings or took on debt to pay everyday expenses, including basic bills.
The share was the highest for September since 2022, when it was 25.4%.
Household budget strain is affecting people across income groups, despite low unemployment.
An FGV/Ibre researcher said families are heavily indebted as labor-market conditions become more stable.
- Who
- Brazilians facing household budget strain.
- What
- In September, 24.9% used savings or took on debt to pay everyday expenses, including basic bills.
- When
- September; the article was published on October 11, 2026.
- Where
- Brazil.
- Why
- Families have little budget flexibility and are heavily indebted. The article also says income from work has become more stable.
This story does not have two clearly opposing sides.
What I see as worse in this scenario is that the labor market is entering a phase of a little more stability and, at the same time, what we have seen is that families’ conditions have also worsened, because they are very indebted.
The share of people from higher-income families exceeded that of lower-income families, but this is a one-off effect for this month of September.
The unemployment rate was 5.3% in the quarter ending in August, the lowest for that period since the series began in 2012.
Nearly 84 million people in Brazil were in default, and 20.71% of them had overdue basic bills, according to Serasa.
24.9% of Brazilians were taking on debt or using savings to pay everyday expenses, according to FGV/Ibre.
- Using savings or taking on debt
- 24.9% of Brazilians in September
- Previous September peak
- 25.4% in 2022
- Higher-income households
- 25.7% with family income above R$ 4,800
- Lower-income households
- 24.3% with family income up to R$ 4,800
- Unemployment rate
- 5.3% in the quarter ending in August
Sources
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