Nearly five in ten adult Brazilians are in default, with the average debt surpassing R$1,500. Among Brazil’s states, Amapá has the highest proportion of indebted individuals, while Santa Catarina has the lowest, according to a study by Pagou Fácil, a platform from financial services firm Paschoalotto that analyzed national default data.
The survey, based on internal data and other sources such as credit bureau Serasa, found that Brazil had 75.7 million defaulters in March—equivalent to 46.6% of the adult population. Compared to March 2024, this figure rose by 2.8 million, or 3.8%. According to Paschoalotto economist, Rafael Saab, defaulters are individuals with outstanding debts, not necessarily those listed on credit bureaus like Serasa or SPC.
The states with the highest rates of default are Amapá (61.8% of the adult population), the Federal District (60.1%), Rio de Janeiro (55.6%), Amazonas (54.5%), and Mato Grosso do Sul (54.1%). The lowest default rates are found in Santa Catarina (36.5%), Piauí (37%), Espírito Santo (41.5%), and Rio Grande do Sul (41.6%).
The survey estimates that the average debt per defaulter is R$1,588, with the national total reaching R$438 billion—a 13% increase compared to March 2024. “According to projections, default rates are expected to remain stable in the coming years,” Mr. Saab said.
Flávio Ataliba Barreto, coordinator of the Center for Northeast Development Studies at the Brazilian Institute of Economics (FGV Ibre), said the trend is toward rising indebtedness, which has remained high since the pandemic.
However, the pace of growth will depend on how much borrowing capacity households still have, as well as the broader macroeconomic outlook—factors that could slow the trend. “Household debt levels are already quite high,” he said.
Mr. Barreto noted that inflation, which reached 5.53% in the 12 months through April, the benchmark Selic interest rate—raised by the Central Bank to 14.75%, its highest level in nearly 20 years—and signs of economic slowdown are squeezing family budgets, driving up defaults and making it harder to reduce debt.
Paschoalotto’s data also show that the largest share of debt (28.5%) is tied to banks and credit cards, followed by unpaid utility bills such as water, electricity, and gas (20.6%), various services (19.1%), and finance companies (11.2%).
Mr. Barreto said credit card debt plays an outsized role in Brazil. For many families, he explained, credit cards have become a way to supplement income.
Diego Martins Mosquim, head of planning at Paschoalotto, highlighted another point of concern: a lack of interest in traditional investments and the rapid rise of online sports betting—popularly known as bets.
Data from the eighth edition of the X-Ray of the Brazilian Investor survey, published by the Brazilian Financial and Capital Markets Association (ANBIMA) and Datafolha, show that around 23 million Brazilians place bets, compared to 10 million and 9 million who invest in certificates of deposit (CDBs) and investment funds, respectively.