Brazil is grappling with a persistent rise in household debt and defaults, presenting a challenging scenario for families and businesses alike. With the central interest rate reaching a staggering 15% per annum, many are finding it increasingly difficult to manage their debts, despite the country's low unemployment rates. As of the end of 2025, Serasa reported that there are 81.2 million delinquent individuals in Brazil, marking a 10.5% increase from the previous December and the highest level since at least late 2016. Additionally, Equifax Boa Vista reported a 7.2% increase in the number of people with negative credit histories, highlighting the growing financial strain on Brazilian citizens.