Brazil low-income households spend 4x more income on credit card payments

Central Bank data shows low-income Brazilians allocate four times more of their income to credit card payments than higher-income groups, with reliance on expensive credit rising steadily since late 2023. This signals growing financial stress among vulnerable households, which could weigh on consumption and credit quality. The trend suggests potential headwinds for Brazilian growth and financial stability, though the data is aggregate and does not specify default rates.

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