Brazil consumer default rates reach record high with chronic indebtedness

Brazil's consumer default rate has hit a record, with 81.7 million individuals holding negative credit ratings and total debt reaching R$ 539 billion. Data indicates a structural, chronic issue rather than a temporary spike, as 42% of current defaulters were also in default a decade ago. This high income commitment, particularly among low-wage earners, signals significant downside risk to domestic consumption and financial stability.